Mar 31, 2018
To the Members,
Jain Irrigation Systems Ltd. (JISL) is determined to contribute to the global symbiotic ecosystem of water, food and energy to build a sustainable future for all habitants on the earth. JISL is creating complete solutions through hi-tech agri inputs, contract farming and nutritious food products. The Company is pioneering initiatives to mitigate global warming by creating clean energy through zero-waste biogas systems, solar energy innovations and water and energy efficient products JISL, while serving all itâs stakeholders, is moving towards self-sustaining value chains, creating an infinite impact.
1) Financial Highlights
Rs. in Million (except EPS)
Particulars |
2017-18 |
2016-17 |
Domestic Sales & Services |
37,219 |
32,516 |
Export Sales & Services |
4,760 |
3,341 |
Other Operating Income |
910 |
1,246 |
Sub Total |
42,889 |
37,103 |
Other Income |
697 |
1,208 |
Total Income |
43,586 |
38,311 |
Operating Profit |
7,570 |
7,266 |
Interest and Finance Charges |
2,759 |
3,423 |
Depreciation and Amortisation |
1,902 |
1,811 |
Profit before taxation and exceptional items |
2,909 |
2,032 |
Exceptional Items (Forex) |
- |
- |
Profit/(loss) before tax |
2,909 |
2,032 |
Provision for Tax |
||
Deferred Tax Asset/(Liability) |
(366) |
216 |
Current Tax Provision |
464 |
178 |
Profit for the year before Prior |
2,811 |
1,638 |
Period Expenses |
||
Prior Period Items-Income/ |
||
(Expenses) |
||
Profit for the year |
2,811 |
1,638 |
Profit b/f from the previous year |
23,775 |
22,496 |
Balance available for |
26,586 |
24,134 |
Appropriation |
||
Out of which the Directors have |
||
appropriated as under; |
||
Proposed Dividend |
516 |
360 |
Dividend Distribution Tax |
106 |
73 |
Transfer to General Reserve |
Nil |
Nil |
Balance carried forward |
25,964 |
23,701 |
Earnings per Share (Rs.) Basic |
5.45 |
3.18 |
Diluted |
5.45 |
3.18 |
2) Operations - Standalone, and State of Affairs of the Company
Standalone
The revenue including operating income (net of excise duty) increased by 15.6% during the year under review. MIS and PE Pipes segments were major growth drivers, which showed a remarkable growth rate of 18.1% & 36.4%, respectively. Other business divisions have also reported growth as compared to last fiscal year. Hi-tech Agri Input Products division grew by 17.3%, while the Plastic Products division experienced a growth of healthy 20.0%.
The Company has reported a profit of Rs.2,811 million for FY 2018 as against Rs.1,638 million of FY 2017, recording remarkable growth of 71.6%, after about 5 years. Repayment of high cost loans had a positive impact on the Companyâs profit and has, inter alia, resulted in increased profitability.
Consolidated
On a Consolidated basis the revenue from operations (net of excise duty) for FY 2018 was recorded at Rs.79,467.64 million as against Rs.67,697.83 million for FY 2017, showing a growth of 17.4%. Other income for the FY 2018 was Rs.573.02 million as against Rs.612.01 million of FY 2017. Revenue of Hi-tech Agri Input Products Division registered a strong growth of 28.3% on account of growth in India as well as through acquisitions abroad. Overall Plastic Division registered strong growth of 19.7% on account of robust offtake from domestic market. EBIDTA has increased by 14.9% on YoY basis at Rs.11,528 million. Total raw material consumption was recorded at Rs.41,946.05 million for FY 2018 as against Rs.35,946.84 million for FY 2017, reflecting increase of 16.69%. Employee cost was Rs.8,889.63 million for FY 2018 as against Rs.7,382.94 million for FY 2017. The finance cost for FY 2018 was recorded at Rs.4,785.86 million as against Rs.4,593.51 million for FY 2017, reflecting increase due to acquisition funding raised.
3) Dividend Distribution Policy
The Company has adopted the Dividend Distribution Policy with respect to SEBI notification dated 8th July, 2016, and policy is available on our website http://www. nseprimeir.com/z_JISLJALEQS/files/JISL_Dividend_ Policy.pdf.
4) Dividend
The Directors propose to shareholders a Dividend on Ordinary and DVR Equity Shares of Rs.2 each, (details as follows) involving an outlay of Rs.516 Million to all eligible shareholders, and Rs.106 Million of Dividend Distribution Tax, for year ended 31st March, 2018:
Particulars of Equity Shares |
Amount (Rs.) |
50% (Rs.1.00 per share) on 49,63,66,053 Ordinary Equity Shares of Rs.2 each |
49,63,66,053 |
50% (Rs.1.00 per share) on 1,92,94,304 DVR Equity Shares of Rs.2 each |
1,92,94,304 |
Total |
51,56,60,357 |
Dividend Distribution Tax @ 20.555% |
10,59,95,533 |
Total |
62,16,55,890 |
5) FCCB redemption
The Company redeemed 4,000 FCCBâs of USD 10,000 each aggregating to USD 40 million (Equivalent INR 2,612 million) issued in the year 2012 to International Finance Corporation (âIFCâ), Washington, USA (a World Bank Arm) and avoided potential Equity dilution of 4.58% during the year under review.
During May, 2018 the Company redeemed 1,000 FCCBâs of USD 10,000 each aggregating to USD 10 million issued to Nederlandse Financierings- Maatschappij Voor Ontwikkelingslanden N.V., The Netherlands (âFMOâ) (USD 5 million) and Societe De Promotion et de Participation pour la Cooperation Economique, France (âProparcoâ) (USD 5 million) and avoided potential equity dilution of 1.12% in the current year FY 2019.
6) Credit Rating
India Ratings & Research (a Fitch Group Company) upgraded the Long Term Issuer Rating of the Company to âIND AVStableâ from âIND BBBâ. The upgrade reflects the continued improvement in Companyâs business and credit metrics, because of increasing scale of operations and resultant higher EBIDTA, while debt levels have remained at similar levels.
7) Capacity Expansion and Capital Expenditure
The Company has continued its pre-decided growth/ maintenance capex. The following table shows the capex incurred for maintenance and capacity expansion implemented during the year, and the resultant capacity addition in FY 2018;
Segment Name |
Unit |
Addition in Capacity for FY 2018 |
Capex FY 2018 (Rs. in Million) |
MIS |
MT |
4,040 |
1,165.45 |
Plastic Division |
MT |
10,050 |
151.64 |
Tissue Culture |
Million Nos |
10 |
296.98 |
Others & Corporate |
- |
- |
673.31 |
Total |
2,287.38 |
8) Other Major Developments during FY 2018
Jain Farm Fresh Foods Limited
The Company in February, 2018, through step down subsidiary of Jain Farm Fresh Foods Limited, acquired 100% stake in INNOVAFOOD N. V. Belgium, a leading importer, stockist and distributor of food ingredients and now has become one of the leading players in the dehydrated vegetables, spices and other food ingredients in Belgium, Netherlands, France and other neighbouring countries of European Union.
The Company recorded a revenue (net of excise duty) of Rs.16,281 million for FY 2018 as against Rs.15,794 of FY 2017, an increase of 3.08%, The Finance Cost for FY 2018 was Rs.774 million. Profit before tax for the Company for FY 2018 was Rs.383 million as against Rs.846 million of FY 2017, resulted in decrease of 54.73%, which could be construed as an impact of fire incident. Net loss for FY 2018 was Rs.435 million as against profit of Rs.605 million of FY 2017.
On 18th November, 2017, a major fire broke out at the Shirsoli Onion Dehydration Warehouse of JFFFL. The fire started in the wee hours of the day, generating heavy losses as the dried onions are inflammable. All losses are covered by insurance. The Company is committed to restoring and recovering losses while making systemic efforts to avoid such adversities in the future. Furthermore there was deflation in the commodities like garlic and mango which impacted the revenue of JFFFL.
Sustainable Agro-Commercial Finance Limited (SAFL)
SAFL is focusing its activities on Farm and Farmer only and operates in the rural & semi urban geographies of India. SAFL currently has 24 branches operating across the states of Maharashtra, Karnataka and Madhya Pradesh.
In February, 2018 SAFL was honoured with the Award - Best NBFC of the Year. The said award was given at the BFSI Event organised by the World HRD Congress & presented by ET Now âRise with Indiaâ. The Company has been certified as one of the 10 Most Admired Non-Banking Financial Companies in 2018 by âInsight Successâ.
- During the year 2017-18, SAFLs performance on some parameters are as follows:
Highlights for the year ended March 31, 2018 are:
Particulars |
Amount (Rs. in Million) |
Applications received |
1,431 |
Sanctions accorded |
1,360 |
Disbursements effected |
1,316 |
Loans outstanding |
3,215 |
Repayment received |
1,048 |
- During the year 2017-18 SAFL made Net profit after tax of Rs.75.3 million.
Change of KMP
During the year Mr. Manoj Lodha, Chief Financial Officer resigned and was relieved on 10th November, 2017. The Nomination and Remuneration Committee then recommended apointment of Shri Atul B. Jain as Chief Financial Officer whose appointment was then approved by Board on same date.
9) List of Awards/ Recognition - Financial Year 2017-18
The Company has received the following awards and accolades during the fiscal 2018.
A) Jain Irrigation Systems Limited
Name & Nature of Award / Honour |
Instituted By |
Given By |
Received by |
Felicitation - 10th Global Agriculture Leadership Summit |
Indian Council of Food and Agriculture |
- |
Shri Anil B. Jain |
The Economic Times Polymers -CEO of the Year-2017 |
The Economic Times Polymers Magazine |
Mr. Robin Banerjee, Managing Director, Caprihans India Ltd. Mr. Shrikant S. Bairagi, Chief Executive Officer, Prothom Industries India Pvt. Ltd |
Shri. Atul B. Jain |
Lifetime Achievement Award -Corporate Excellence |
Make in India Foundation, Govt. of Maharashtra |
Prof. Shri Ram Shinde, Honâble Minister for Water Conservation, Protocol, OBC Welfare and also Guardian Minister of Ahmednagar |
Shri Somnath Jadhav |
Yes Bank Natural Capital Award |
Yes Bank |
Dr. Harsh Vardhan, Honâble Ministry of Science & Technology, Ministry of Environment, Forest and Climate Change and Ministry of Earth Sciences |
Shri Abhijit Joshi & Shri Atin Tyagi |
APEDA Export Award-2015 (received in 2017-18) |
Agricultural & Processed Food Products Export Development Authority, Government of India |
Ms. Rita A. Teaotia, Secretary, Department of Commerce, Ministry of Commerce & Industry, Government of India. |
Shri Roshan Shah |
Aqua Excellence Award |
Aqua Foundation, New Delhi |
Dr. Vandana Shiva, Environmentalist and Social Activist |
Shri. Prabhat Srivastava |
50 Most Impactful Leaders In Water & Water Management |
World CSR Day & Sustainability Institution |
Dr. Rajan, Co-Founder, Livpure |
Shri. Abhijit Joshi |
Inclusive Business List 2017 (received in 2017-18) |
The shared Value Initiative India |
Dr Amit Kapoor, CEO, Institute For Competitiveness and Justin Bakule, Executive Director, Shared Value Initiative India |
Shri Atin Tyagi |
CBIP Award (Optimum and Efficient Utilisation of Water Resources) |
Central Board of Irrigation And Power (CBIP) |
Girish Mahajan, Honâble Minister for Water Resources, Govt of Maharashtra |
Shri Varun Kumar Singh |
Shri Ashok B. Jain, Chairman of the Company has received the following award and accolades during the fiscal 2018.
B) Shri Ashok B. Jain, Chairman.
Name & Nature Award / Honour |
Instituted By |
Given By |
Maharashtra Corporate Excellence Award (Maxell Award)-2017 |
Maxell Foundation |
Sam Pitroda, Indian telecom revolution and renowned technologist (Former Advisor to the Prime Minister on Public Information Infrastructure & Innovations (PIII)) |
10) Other Major Developments Post March, 2018
In May, 2018 the Company received an Integrated Drip Irrigation project in Vidarbha region worth Rs.2,391.7 million. More than 10,000 farmers and 20,748 acre command area covering 65 villages of Arvi Taluka of Wardha district of Maharashtra will be benefited from the project.
In May, 2018 the Company was awarded Maharashtraâs One More âHarKhet Ko Raniâfuture ready Micro Irrigation project worth Rs.703.6 million. More than 3,000 farmers and 8,086 acres command area of Jalgaon district of Maharashtra will be benefited from the project.
In June, 2018 the Company has raised Rs.2,600 million by way of Secured External Commercial Borrowings loan from International Finance Corporation, (an arm of World Bank Group) Washington (âIFCâ), to be repaid in 7 years from 15th March, 2019, the all in cost is 10.62% p.a.
In July, 2018 the Company received Indiaâs largest Irrigation Project initiated by Madhya Pradesh Government to be executed at Mohanpura, Madhya Pradesh worth Rs.9,750 million. The project shall cover cultivable command area of 228,475 acres.
11) Particulars of Employees
As per provisions of Section 134 of the Companies Act, 2013 only four of the persons in employment of the Company have drawn remuneration in excess of Rs.850,000/- per month, during the year under review or part thereof as per details in the Annexure I to this report.
12)The Operations of Holding Subsidiaries
The Statement containing salient features of the financial statements of subsidiary companies is attached in AOC- 1 at Annexure II.
Other Subsidiaries
Information on operations and performance of other subsidiaries is covered in the section MANAGEMENT DISCUSSION AND ANALYSIS elsewhere in this Annual Report.
13)Employee Stock Option Plan (ESOP) ESOP
i) ESOP- 2005
All the options under the scheme are exercised and the scheme is now closed.
ii) ESOP-2011
There is no material change during the year under review in ESOP-2011. No options have been granted, neither exercise of options has taken place during the year under review, in ESOP-2011.
However, on August 13, 2018 the Board of Directors on recommendation of Nomination and Remuneration Committee have approved certain changes to ESOP 2011 to provide for loans to employees and also formation of a trust to buy shares from open market. These changes are detailed in the AGM Notice and Explanatory Statement sent to members separately. Further, details are disclosed on the Companyâs website and a web-link thereto is http://www.nseprimeir.com/z_ JISLJALEQS/files/Esop_ Scheme_2011.zip
i) A description of each ESOP that existed at any time during the year, including the general terms and conditions of each ESOP including:
Sr. No. |
Particulars |
ESOP 2011 |
1 |
Date of Shareholders approval - |
30th September, 2011 and 27th September, 2013 |
2 |
Total number of options approved under ESOS |
5,356,000 |
3 |
Vesting requirements |
Not yet granted |
4 |
Exercise price or pricing formula |
To be decided |
5 |
Maximum term of options granted |
To be decided |
6 |
Source of shares (primary, secondary or combination) |
Primary* |
7 |
Variation in terms of options |
None* |
*see 2nd para above
ii) Option movement during the year
Sr. No. |
Particulars |
ESOP 2011 |
1 |
Number of options outstanding at the beginning of the period |
- |
2 |
Number of options granted during the FY 2018 |
- |
3 |
Number of options forfeited / lapsed during the FY 2018 |
- |
4 |
Number of options vested during the FY 2018 |
- |
5 |
Number of options exercised during the FY 2018 |
- |
6 |
Number of shares arising as a result of exercise of options |
- |
7 |
Money realized by exercise of options (INR), if scheme is implemented directly by Company |
|
8 |
Loan repaid by the Trust during the year from exercise price Received |
|
9 |
Number of options outstanding at the end of the year |
- |
10 |
Number of options exercisable at the end of the year |
- |
iii) Details related to the Trust
(a) General information on all schemes
Sr Particulars No. |
Details |
1 Name of the Trust |
Jain Irrigation Employee Welfare Trust |
2 Details of the Trustee(s) |
IDBI Trusteeship Services Limited, Mumbai, Mr. Aaron Solomon, Solicitor Mrs. Snehal Walvalkar, FCA |
3 Amount of loan disbursed by Company/ any Company in the group, during the year |
NIL |
4 Amount of loan outstanding (repayable to Company / any Company in the group) as at the end of the year |
NIL |
5 Amount of loan, if any, taken from any other source for which Company / any Company in the group has provided any security or guarantee |
NIL |
6 Any other contribution made to the Trust during the year |
NIL |
(b)
Number of Shares |
As a percentage of paid-up equity capital as at the end of the year immediately preceding the year in which shareholdersâ approval was obtained |
Held at the beginning of the year |
NIL |
Acquired during the year |
NIL |
Sold during the year |
NIL |
Transferred to the employees |
NIL |
during the year |
|
Held at the end of the year |
NIL |
(c) In case of secondary acquisition of shares by the Trust.- NOT APPI ICARI E, However, on August 13, 2018 the Board of Directors on recommendation of Nomination and Remuneration Committee have approved certain changes to ESOP 2011 to provide for loans to employees and also formation of a trust to buy shares from open market. These changes are detailed in the AGM Notice and Explanatory Statement sent to members separately.
14)Material Developments in Human Resource
We continue to bring to life and nurture the guiding principles laid down by our Founder Chairman Shri Bhavarlal H. Jain. The far reaching impact of those profound and insightful principles can be seen in the positive words and actions of our associates. Inspired by these eternal concepts, numerous projects that incentivize real performance are being executed across the supervisory and managerial cadre of the company. We have also incorporated a flexi job scheme to ensure that each individual member of our skilled and unskilled workforce feels comfortable at the workplace.
The organization also helps them and other stakeholder fulfill their aspirations and responsibilities in the following manner:
Associate Engagement
We continue to evolve innovative training and performance incentivizing schemes that work in tandem with our high performance and flexible production systems. The flexible job approach provides our operational workforce an opportunity to explore and acquire multiple skills. This helps manages stress levels through job rotation. The antidote alleviates the fatigue normally associated with continuously running processes. Our work culture promotes trust, organizational commitment and pleasure associated with a job well done while helping associates balance efforts required to achieve a goal.
Family Development
To help families appreciate the hard work put in by our associates we invited 375 families with an aggregate of 1,965 members to visit the workplace. In addition to helping our associates gain recognition for their hard work and instill a sense of pride in the families this also helps foster the culture encapsulated in the maxim âWork is Life, life is workâ. During the year 22 associates availed of the facility to use our large and well-equipped Multi-purpose Hall in Jalgaon city at nominal charge to host up to 500 people at family functions like marriages. To help our associates take better care of their health we have also established an open air gymnasium at the Jain Plastic Park. We also organized regular counseling sessions for our associates and their families where everyone got an opportunity to consult an expert team of physicians. In addition to these consultations our dieticians also helped people develop customized meal plans. We also continue to provide a financial support to people suffering from a wide range of chronic ailments like infertility, ophthalmic and orthopedic disorders etc. We also organized consultations for individual associates interested in giving up undesirable habits which they had identified in themselves.
Childrenâs Development
In line with our belief in that the youth are the future of a nation we covered 138 children of associates studying in the 7th to 10th standards under the âVidyarthi Utkarsh Abhiyanâ. This program focuses on the academic & cultural development of these children. In addition we organized a 10 day residential camp aimed at developing the overall personality of 58 children of associates studying in 7th to 10th Standard at Anubhuti International School. A total of 189 children of associates were identified on basis of merit under the âEducational Scholarship Schemeâ. An aggregate amount of Rs.5.12 million was disbursed for their educational expenses based on claims made.
Prevention of Sexual Harassment
The Company had adopted and put in place a policy on prevention, prohibition and redressal of sexual harassment at workplace according to the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and rules thereunder. The Company stands committed to providing equal opportunities for employment irrespective of the candidateâs race, caste, sex, religion, colour and nationality, among others. All the employees are treated in dignified manner and the Company maintains a work atmosphere free of sexual harassment whether physical, verbal or psychological. A sensitization workshop was conducted during the year under review by the Company to spread awareness about prevention of sexual harassment. The Company has in place Committee for redressal of sexual harassment complaints which consists of Ms. Manisha Kinge, Chairperson, Dr. Jayashree Rane, Dr. Ashwini Patil, Ms. Varsha Rane, Dr. Anil B. Patil, Mr. Jayraj S. Nair, Mr. V. M. Bhat (Members).
Social Involvement
Emergency services such as fire engines and ambulances were provided in and around each manufacturing site across the country whenever required to deal with situations like road accidents. A series of eye camps were organized in collaboration with âKantai Netralayâ in various villages in Jalgaon, Maharashtra. Cataract surgeries were carried out free of charge for patients identified at these camps.
The Company also organized blood donation camps at periodic intervals for blood banks operating in the area. These programs were conducted twice in a year at various locations such as Plastic Park and Agri Park at Jalgaon (Maharashtra), Food park at Chittoor (Andhra Pradesh) & Padra (Vadodara - Gujrat), Plastic Park at Hyderabad (Telangana), Alwar (Rajasthan) & Udumalpet (Tamil Nadu). This year a record number of blood units were donated. A total of 2,635 units of blood were donated. It is noteworthy that due to the sheer number of donors we had to invite blood banks from adjacent district to Jalgaon (Maharashtra) to participate in the blood donation drive.
Training
Training is a continuous process to sharpen the performance/skills of associates and it continues at all our locations of the Company, all the time. The brief about location and program-wise training is as under
Associates Training FY 2017-18
Sr. |
Location |
In House Training |
Orientation |
External Institute |
Total |
Total |
|||
No. |
No. of participants |
Duration (Hours) |
No. of participants |
Duration (Hours) |
No. of participants |
Duration (Hours) |
no of participants |
Man Hours |
|
1 |
Jain Plastic Park Jalgaon |
9,286 |
40,020 |
78 |
4,920 |
49 |
1,239 |
9,413 |
46,179 |
2 |
Jain Green Energy Park Jalgaon |
838 |
1,869 |
4 |
320 |
12 |
189 |
854 |
2,378 |
3 |
Jain Tissue Culture Park Jalgaon |
171 |
357 |
- |
- |
- |
- |
171 |
357 |
4 |
Jain Agri Park Jalgaon |
858 |
2,044 |
5 |
400 |
13 |
308 |
876 |
2752 |
5 |
Jain Plastic Park Hyderabad |
848 |
1,921 |
- |
- |
- |
- |
848 |
1,921 |
6 |
Jain Plastic Park Alwar |
550 |
1,628 |
- |
- |
- |
- |
550 |
1,628 |
7 |
Jain Plastic Park Udumalpet |
239 |
403 |
- |
- |
- |
- |
239 |
403 |
8 |
Jain Plastic Park Karnool |
12 |
26 |
- |
- |
- |
- |
12 |
26 |
9 |
JFFFL, Jalgaon |
2,721 |
7,060 |
20 |
1,600 |
26 |
535 |
2,767 |
9,195 |
10 |
JFFFL, Chittoor-I & II |
468 |
1,371 |
- |
- |
1 |
28 |
469 |
1,399 |
11 |
JFFFL Vadodara |
750 |
1,635 |
- |
- |
- |
- |
750 |
1,635 |
Grand Total |
16,741 |
58,334 |
107 |
7,240 |
101 |
2,299 |
16,949 |
67,873 |
Agricultural Engineersâ training 2017-18
Sr. No |
Particulars |
No. of associates |
Duration (Hours) |
No. of Students |
Duration (Hours) |
Grand Total (Hours) |
1 |
Engineer Training |
157 |
29,664 |
242 |
50,336 |
80,000 |
2 |
Engineer Field Training (3 months) |
- |
- |
112 |
47,632 |
47,632 |
Total |
157 |
29,664 |
354 |
97,968 |
1,27,632 |
Exhaustive courses were organized to foster a sense of responsibility and enhance focus on high performance delivery. Apart from the onsite orientation programs, few associates of the managerial & supervisory cadre were nominated for external trainings, seminars & workshops with the objective of core & multi skill set development. Behavioural & soft skill programs along with nomination for technical courses was done during the year as a routine exercise. The total of 67,873 man hours were devoted to training of 16,949 associates during the year under review. The associates were nominated from across functions with the objective of multi skill set development.
Workforce Strength & Recruitment:
Given the companyâs rapid growth recruitment is an on-going process where we strive to identify, select and appoint the right people for the job at hand. This also includes recruitment of Managers, Engineering Graduates and Post Graduates from institutes like IIMâs, IIFT, IITâs, Agricultural Universities and colleges through campus placements. We were also able to successfully acquire talented people through walk in interviews held at short notice. New associates are selected on basis of merit, potential, compatibility with the organizational culture. The strength of the Company in terms of manpower has reached 8,170 on 31st March 2018, after gross addition of 937 during F.Y. 2017-18.
15)Remuneration Policy
The Company has put in place a Remuneration Policy for Executive Directors, Independent Directors, and KMPâs pursuant to provision of Companies Act 2013, and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and the same is annexed at http:// www.nseprimeir.com/z_JISLJALEQS/files/JISL_ APPOINTMENT_AND_REMUNERATION_POLICY.pdf .
16)Corporate Social Responsibility & Sustainability Report
a) Corporate Social Responsibility
The Company has a holistic and comprehensive very comprehensive Policy in place with the identified CSR Programme and projects. The CSR Committee of the Company has approved, to carry out CSR activities on its own and also through the two Trust/Foundations, namely Bhavarlal and Kantabai Jain Multipurpose Foundation (BKJMF) Trust, Jalgaon and another Section-8 Company, Gandhi Research Foundation (GRF), Jalgaon. The CSR Report is attached as Annexure III.
Sustainability Reporting
We have so far released four sustainability reports with a frequency of two years. Our last sustainability report is prepared as per GRI G4 and is available on our website http://jainpipe.com/PDF/SustainabilityReport2016. pdf. The assurance as per AA1000 AS is taken from external party for this report. We are now in process of implementing Internal Sustainability Management Framework to integrate our reporting process. Following SEBIâs latest LODR we will attempt our first Integrated Report in FY 2018-19 i.e. next year.
Climate Change Mitigation at a Glance
Being environmentally concerned organization Company is committed to protect the environment from impacts of climate change. JISL is among very few organizations in the country that have incorporated GHG accounting and mitigation actions in their management systems and got it certified from third party. FY- 2018 was fourth year of our carbon accounting and certification. We account and report on our complete Scope 1 and Scope 2 GHG emissions and removals and selective Scope 3 emissions.
We have implemented and registered renewable energy and energy efficiency projects to generate green energy and mitigate climate change. Some of these projects are also registered under Clean Development Mechanism (CDM) of United Nations Convention on Climate Change (uNFCCC). By the end of FY 17-18 the company has verified 38,637 Certified Emission Reductions (CDM carbon credits) and 3,620 Voluntary Carbon Credits. All our registered CDM Projects have potential to generate 30,000 plus carbon credits per annum. Out of the registered CDM projects, solar and biogas based power generation projects are also registered under Renewable Energy Certificate (REC) Scheme.
Water Conservation at a Glance
We have conducted gate to gate water footprint assessment following international standard ISO 14046:2014 during the reporting period. Water management system following guidelines of ISO 14046 is implemented in the manufacturing locations all over India. In addition we initiated the implementation of Alliance for Water Stewardship (AWS) standard in Kantai Watershed (a micro-watershed of Girna River in Jalgaon). The area covered under AWS comprises of 16 villages and our Jalgaon establishments (Jain Hills, Jain Valley, Takarkheda and Plastic Park) with an approximate coverage of 21,000 acres.
17)Directors retiring and their background
All Independent Directors have given declaration that they continue to meet the criteria for independence as laid down under Section 149 (6) of the Companies Act, 2013, and Regulation 25 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Shri R. Swaminathan retires by rotation as per the Companies Act, 2013, and being eligible offers himself for reappointment, at the ensuing Annual General Meeting. The brief background of retiring director as follows:
Shri. R. Swaminathan
Shri. R. Swaminathan is a B.Tech (Chemical). He has been associated with the Company since inception. He looks after the technical areas of PVC Pipes, Plastic Sheets and related business areas. He has worked in almost all the operational areas and is involved with development of new applications & products and adaptation of drip technology for Indian conditions. In the recent years he is credited with development of new plastic sheet product which is now fast replacing the lumber applications in the North American construction industry. He has substantial authority to oversee and implement the day to day production plan of Plastic Park of the Company in accordance with the annual budget and quarterly budget approved by the Board.
Please also see Annexure I to Explanatory Statement.
18)Internal Financial Controls (âIFCâ)
The Board of Directors of the Company are responsible for ensuring that Internal Financial Controls have been laid down in the Company and that such controls are adequate and operating effectively. The foundation of Internal Financial Controls (âIFCâ) lies in the Code of Conduct of the Company, policies and procedures adopted by the Management, corporate strategies, annual business planning process, management reviews, management system certifications and the risk management framework.
The Company has IFC framework, commensurate with the size, scale and complexity of its operations. The framework has been designed to provide reasonable assurance with respect to recording and providing reliable financial and operational information, complying with applicable laws, safeguarding assets from unauthorized use, executing transactions with proper authorization and ensuring compliance with corporate policies. The controls, based on the prevailing business conditions and processes have been tested during the year by an independent agency and no reportable material weakness in the design or effectiveness was observed. The framework on IFC over Financial Reporting has been reviewed by the independent agency and external auditors. The Company uses various IT platforms to keep the IFC framework robust. The systems, standard operating procedures and controls are implemented by the management team and are reviewed by the internal audit team whose findings and recommendations are placed before the Audit Committee.
a) Policies and processes adopted for orderly & efficient conduct of business
The Company has formalized various policies at Board level to ensure ethical, orderly, timely, flexible and efficient conduct and control of business in all its divisions, namely Micro- sprinkler irrigation, PVC & PE piping systems, Tissue Culture, Greenhouses, bio fertilizers and green energy products, besides processing of foods and vegetables through its subsidiary JFFFL.
b) Safeguarding of assets
The Company has evolved efficient, effective mechanism for the safeguarding of its assets whether tangible or intangible, assets and property with self-control or third parties, funds or securities and negotiable instruments, employee associates. Besides providing for safety, housekeeping and security of the assets, the Assets are adequately insured against perils/happenings etc.
c) Prevention and detection of fraud and errors
The Company has an internal audit department at each of its manufacturing location, which conducts comprehensive audit of every single financial transaction, as well as reconciliation to accomplish control and to ensure prevention of fraud, and is aided by an âexternalâ internal audit which reviews not only manufacturing locations but also depots/ other processes like purchase, statutory compliance, collection, foreign exchange, taxation, costing, compliance, accounting etc. The Companyâs management information and accounting system also integrates internal control mechanism.
d) Accuracy and completeness of accounting records
The Company has in place fully integrated ERP system, based on SAP software, and its subsidiaryâs records also get integrated while consolidating the same as per requirements of Law for the time being in force. ERP System encompasses authorization matrix and maker / checker verification to ensure transparent and timely flow of information, and recording thus creating appropriate and conductive platform for effective control and decision making. The accounting system has the provision for Audit trail and check mechanism for use by various auditors.
e) Timely preparation of reliable financial information
The Company has a robust and efficient mechanism for timely preparation of reliable financial information, within given timelines and has a track record of submitting information without any delay to relevant authorities.
f) Monitoring and Reporting
The Company has put in place a mechanism to monitor and report exceptions on compliance requirements on an enterprise wide level. Company has already implemented an IT platform to capture non conformity and reporting to Chief Compliance Officer & Company Secretary, who shall be mainly responsible for the monitoring control and reporting function. In case of non-compliance despite warnings thrown up in the system, a gradual system of remedial action, warning, punishment is laid down depending on gravity and level of non-compliance and deterrent is in place for non- compliance.
19)Corporate Governance Report
The Company constantly endeavours to follow the corporate governance guidelines and best practices sincerely and disclose the same transparently. The Board is conscious of its inherent responsibility to disclose timely and accurate information regarding the Companyâs operations, performance, material corporate events as well as on the leadership and governance matters relating to the Company.
The Board, at all times exercises its independence both, in letter and in spirit and the Directors fully understand their fiduciary duties. The Directors have always acted in the best interest of the Company and will continue to do so in the future. It is equally important to state that the Company has a professional and competent leadership team for the management of the business. The Board guides, supports and compliments the Management team towards achieving the set objectives to make the enterprise more sustainable and valuable in the future.
A separate Corporate Governance Report is attached as Annexure IV forming part of Directorâs Report in terms SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. A Certificate from Statutory Auditors, confirming compliance of Corporate Governance code and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is also attached together with CEO Certificate/declaration.
20)Management Discussion and Analysis Report (MDAR)
As per the requirements of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 a separate Management Discussion & Analysis is given elsewhere in the Annual Report at Annexure V.
21 )Particulars of Loans, Guarantees or Investments by the Company
The details of Loans, Guarantees or Investments by the Company during the year given at Annexure VI.
22)Consolidated Financial Statements
Consolidated Financial Statements are prepared in accordance with IND-AS, form part of the Annual Report. Pursuant to Section 129(3) of the Act, a statement in Form AOC-1 containing the salient features of the financial statements of the subsidiary companies is attached to the Financial Statements. The financial statements will also be kept open for inspection by any Member at the Registered Office of the Company. In terms of requirement of the Companies Act, 2013 the financial statements of the Company, consolidated financial statements along with relevant documents are available on the website of the Company.
23)Significant, Material orders passed by the Regulators/ Court/ Tribunals
There are no material orders or judgments passed by the Regulators/ Court/ Tribunals which would impact the âgoing concernâ status of the Company or its future prospects, subject to contingent Liabilities as mentioned in the notes forming part of Financial Statements.
24) Directorâs Responsibility Statement
In accordance with the provisions of Section 134(3) (c) of the Companies Act, 2013, your Directors state that:
i) In the preparation of the annual accounts, the applicable Accounting Standards (Ind AS) have been followed except, to the extent indicated in notes;
ii) The accounting policies are selected and applied consistently and are reasonable; prudent judgments, and estimates were made so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2018, and, of the profit of the Company for the year ended 31st March, 2018;
iii) Proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of Companies Act, 2013, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
iv) The Directors have prepared the annual accounts for the FY ending 31st March, 2018 on a âgoing concern basisâ.
v) The Directors have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively.
25)Extract of Annual Return
Pursuant to Section 92 (3) of the Companies Act, 2013, the extract of Annual Return in form MGT - 9 is attached at Annexure-VII.
26)Governance Disclosers
Policy for Performance Evaluation
In terms of Section 178 of Companies Act 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Board has constituted Nomination & Remuneration Committee (NRC) with three Independent Directors and one Non-Independent Director, and an Independent Director being Chairman of the Committee.
Board has evolved Companyâs policy for appointment and remuneration based on qualifications, positive attributes, the details of which are laid out in Appointment & Remuneration Policy at http://www.nseprimeir. com/z_JISLJALEQS/files/JISL_APPOINTMENT_AND_ REMUNERATION_POLICY.pdf
Board Evaluation
Pursuant to provisions of the Companies Act, 2013 and sub Regulation (3) and (4) of Regulation 25 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 a separate meeting of Independent Directors was held to review the performance of Chairperson, Executive Directors and the Board as a whole on 22nd March, 2018 at Mumbai. The Board evaluation was completed on 13th August 2018.
The Nomination and Remuneration Committee has evolved the policy for performance evaluation of Executive Directors, Independent Directors, Board SubCommittees and the Board as whole and updated the formats as per requirements of SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015. An evaluation of Board as a whole was carried out during the year under review as per laid down processes.
Criteria for evaluation
Particulars |
Parameters for evaluation |
Board |
Board composition and structure; effectiveness of Board processes, information and functioning etc. |
Committees |
composition of Committees, effectiveness of Committee meetings etc. |
Individual Directors |
Whether Director possesses adequate experience in industry/ business/ profession and is knowledgeable to give dispassionate advice, Diligently executes all responsibilities and actions delegated to him/ her, contribution to the Board and Committee meetings, like preparedness on the issues to be discussed, meaningful and constructive contribution and inputs in meetings etc. |
Chairman |
Whether the Chairman leads the Board effectively, whether the Chairman ensure participation of all members in the Board deliberations, Whether Chairman guides the Board /Management on key issues to be brought up to the Board for deliberations, whether the Chairman enhances the Companyâs image in dealing with major stakeholders |
27)Familiarisation programme for Independent Directors (IDâs)
The Company has arranged for visit of Directors at head quarter and new plants including overseas to make the IDâs aware of their roles; rights and responsibilities in the Company as well as the industry in which the Company operates; business model of the Company, and also their role in governance matters. A visit to Israel was organised for the purpose. All Directors are aware about Company and are always updated through site visits about new developments presentations or through Board.
28)Vigil Mechanism
The Company has adopted a Whistle Blower Policy to provide a mechanism to all employees, to report their concern about suspected fraud or violation of Companyâs ethics policy, code of conduct. The policy provides direct access for employees to Chairman of Audit Committee and it is affirmed that no associate of the Company has been denied access to the Audit Committee. The policy of vigil mechanism is available on the Companyâs website and web-link there to is http://www.nseprimeir.com/z_ JISLJALEQS/files/WHISTLE_BLOWER_POLICY.pdf
29) Directors Remuneration
The information pursuant to Section 197 of the Companies Act 2013, read with Rule 5 (1) of the Companies (Appointment and Remuneration of Managerial Person) Rules, 2014 are given in Annexure VIII to this Report.
30)Contracts or arrangements with related parties
The Contract and Arrangement entered into during the year with Related Parties mostly Wholly Owned Subsidiaries were on armâs length basis, in compliance with the applicable provision of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015.
There are no âmaterially significantâ Related Party Transactions entered into by the Company with Promoters, Directors, KMPâs which may have potential conflict with the interest of the Company. All Related Party Transactions are placed before the Audit Committee, which Comprises of Mr. Ghanshyam Dass, Mr. Vasant V Warty, Smt. Radhika Pereira (being the IDâs) of the Company for its approval. The Audit Committee also reviews on quarterly basis all Related Party Transactions during the quarter whether or not previously approved. The Company has adopted Policy on Materiality and dealing with Related Party Transactions. The policy approved by the Board is available on Companyâs website and web-link thereto is http://www.nseprimeir. com/z_JISLJALEQS/files/Policy_on_Materiality_and_ Dealing_ with_ Related_ Party_ Transactions.pdf The Company has transactions with subsidiaries in ordinary course of the business for some of the export-import related transactions for details refer Annexure IX.
31)Environment Health and Safety performance
The Company has implemented Quality, Environment, Occupational Health and Safety Integrated Management System (IMS) with certifications, and the same is maintained with continued improvement at all locations including Jalgaon, Hyderabad and Alwar plants. Some of the Environment, Health and safety improvements achieved in the manufacturing facilities are given below:
- To improve workplace air quality all dust collector hose connections were modified and SPM & RSPM levels were reduced in Casing Pipe.
- Installed auto operated flap to open end of pipe on ATM machine resulted in noise level reduction in Casing Pipe.
- All Driptech activities were integrated with current extrusion by online tubing punch with TRUMPF laser which are CE complied and safer.
- All air & water leakages are arrested in Driptape.
- Separate shed for DA, CO2, O2, N2 gas cylinders, used for plasma cutting machine in filter manufacturing, which improved chemical safety at workplace.
- Separate manifold system for DA, CO2, O2, N2 gas provided for plasma cutting machine in filter manufacturing.
- To reduce operator fatigue magnetic lifter was provided to lift the MS sheet at plasma machine in filter manufacturing.
- Hydraulic stacker was provided to lift the heavy job/ filters in filter manufacturing due to which manual material handling was eliminated.
- In MIS Pipe mixing section the path from hot mixer to cold mixer and cold mixer to compound hopper cover was modified to minimize dust level at workplace.
- Modifications were done in the day bin and hopper cover of all machines to reduce the dust in MIS Pipe.
- Anti-vibrating pads were installed to all turbo to avoid the vibration and noise on mixing floor of MIS Pipe.
- Installed 50 MT truck tilter for unloading of PVC resin from 20ft container in PVC Pipe.
- Water consumption was monitored on daily basis by installing water meter to all water inlets of plant in PVC Pipe.
- Hand railing was provided to all storage hoppers in PVC Pipe mixing section.
- Mixer modification was done to reduce dust pollution in PVC Pipe.
- Hand dryer was installed in associate canteen to dry the hand after hand washing in plants for improvement in hygiene practices.
- Replaced 5 MT Chain pulley blocks with 7.5 MT in machine line of Omega 450 and bigger size machines to enhance factor of safety.
- To reduce operator fatigue, material loading system was installed on 10 machines in injection moulding.
- Operator additional safety feature software was updated on 5 machines in injection moulding machines.
- New trolley was made for shifting of duct coil from shop floor to yard to reduce the vehicle movement in HDPE pipe.
- For pipe feeding from extruder machines to high volume welding machine automatic pipe feeding system was installed to eliminate manual feeding in sprinkler pipe.
32) Fixed Deposits
The Company has not accepted, nor renewed any deposits from public, under the Companies Act 2013 and Companies (Acceptance of Deposits) Rules, 2014, including amendments to the same. The Company had no unclaimed / overdue deposits as on 31st March, 2018.
33) Auditors
a) Statutory Audit
The Auditorâs Report of Statutory Auditors of the Company, Haribhakti and Company LLP, Mumbai, for FY 2017-18 does not contain any qualification, reservation, adverse remark. The Statutory Auditors of the Company shall continue to hold their office as Statutory Auditors upto the Statutory Audit of FY 2020.
b) Cost Audit
Pursuant to the provision of the Section 148 of the Companies Act, 2013, the Board has appointed M/s. D. C. Dave & Co., Cost Accountants, Mumbai as the Cost Auditors for FY 2019. The Shareholders may approve the remuneration to be paid to them for FY 2018-19.
c) Secretarial Audit
Pursuant to Section 204, of Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 the Company has appointed M/s V. Laxman and Co. firm of Company Secretary in practice, to conduct Secretarial Audit of the Company for Financial Year 2018. The report of the Secretarial Audit is attached as Annexure X.
The Secretarial Audit report does not contain any qualification, reservation, adverse remarks.
34)Business Responsibility Report
The Securities and Exchange Board of India (âSEBIâ) requires companies to prepare and present to stakeholders a Business Responsibility Report (âBRRâ) in the prescribed format. SEBI, however, allows companies to follow an internationally recognized framework to report on the environmental and social initiatives undertaken by the Company. The Business Responsibility Report is attached as Annexure XI.
35)Particulars of Energy Conservation, Technology Absorption, Research and Development, Foreign Exchange Earnings and Outgo.
A] Energy Conservation 2017-18 Agri Park & Tissue Culture
In tissue culture growth room, fluorescent lights have been replaced with LED lights that can save minimum 59% electric energy. R&D work place has been installed with LED lights to reduce energy consumption. Part of âFuture Agriculture R&Dâ Green House roof installed with semi-transparent photo voltaic panels. Additional facility for rain water harvesting and storage of water for 36,000 cubic meters created at Block G of Tissue Culture Park, Takarkheda.
Energy Park
Energy audit of all equipmentâs of PV module Plants have been done and identified energy efficient equipments, electrical power meters were installed at individual electrical panels to monitor power consumption. Production process redefined according to energy efficient equipments. Induction heating is introduced at BLDC motor production floor instead of electrical heating, this system heats the shaft before insertion.
B) Technology Absorption/upgradation
Since Company has no collaboration, all efforts are towards upgradation of technology.
Agri Park & Tissue Culture
In tissue culture, pilot scale production of banana plantlets has been initiated using a new approach of plant propagation that will help in improving productivity per person, efficient utilization of laboratory space and opening possibility of high mechanization. Plants produced by this process have performed better on farmersâ field. Based on previous research, potato seed development program has been initiated where initial potato mother plants are multiplied through tissue culture to produce minitubers using aeroponic technology under green houses and these tubers are used to produce sellable seed tubers in the field. We have procured high end precision equipments, namely GCMSMS, LCMSMS and ICPMS for Research and Development in crop improvement and tissue culture. Four acres of nursery facility for vegetable and papaya is installed with precision automated boom Irrigation system. 2,000 square meter area has been built with temperature control facility for seed germination.
Energy Park
Solar Photovoltaic Module
Potential Induced Degradation (PID) free PV modules: 100% production shifted to PID free PV modules by using PID free solar cells & EVA. Successfully modified Automatic Tabber & Stringers (4 nos.) from 4 bus-bar to 5 bus-bar solar cells as per latest
5 bus-bar solar cell technology. Now both Auto lines have shifted to 5 bus-bar solar cells. The use of 5 bus-bar solar cells reduces resistance loss and improves module efficiency as compared to 4 busbar solar cells. Solder-less machine bended copper bus-bar introduced in PV module in place of manually soldered copper bus-bar, which improves reliability
6 reduces resistive loss occurred due to soldering. Pre-dented Aluminum Frames have replaced regular aluminum frames on bigger modules which reduced corner denting process, manpower & production time.
Solar motor & pump
Vacuum pressure impregnation (VPI) machine for motor core is successfully installed and is being used now. Metal composition detection XRF machine is adopted for incoming material quality control.
C) Research and Development Plastic Park
Pressure compensating Inline Flat Drippers
For the uniform growth of crop, the water flow rate has to be constant as per the desired requirement for the particular crop. However due to undulation in the field, there exists a chance for the increase or decrease in water pressure and hence the water flow. Pressure compensating Inline Flat dripper is developed for use with flat integral drip lines. Its compact design and light weight helps achieve high production rate to match the growing market demands. Thus, the water flow rate is kept same irrespective of the change in water inlet pressure within the given range of pressure compensation. Product is available in flow rates 1.0 LPH, 1.6 LPH and 2.0 LPH.
New MIS components :
Various components of Micro Irrigation systems such as Filter Header Flange 4â Tee, QC SM plus plastic clamp, Turbo Barb Elbow 20 x 1â BSPT threaded, Hydrophonic fodder tray, finger filter male / female threaded fittings, QRC SM Plue Male - Female pump connector, Nursery Pot 12â, Male / female threaded flanges, Super flow filter cap 2â to 3â, plastic filter lock ring etc., were all developed and commercialized during FY 2017 - 18. About 61 new Drip and Sprinkler Irrigation Components were developed and commercial production has started.
Irricare : An Internet of Things based Precision Agriculture Solution
Irricare is an innovative web based precision agriculture solution designed to control and monitor irrigation requirements of large and community farming project.
Major components of Irricare are, - IrriConnect PRO -It is a programmable radio operated remote terminal unit (RRTU). It is a solar operated device which can store pre-programmed schedules. User can also connects different sensors like a soil moisture sensor, pressure sensor, flow sensor etc. Irriconnect PRO operates valves according to predefined schedules. A non-programmable version of IrriConnect is also available.
IrriConnect Master - Irriconnect Master is a master controller which receives commands through the server and it evaluates and transfer those commands to IrriConnect PRO (RRTU).
It communicates with IrriConnect PRO using radio frequency and also communicate with Irricare Global server using GSM.
Irricare Global - This is a heart of Irricare System. It is a software operated through a web based server application. User can access Irricare Global through internet and can view status, upload new schedules.
Features of Irricare
It is a web based system, user can log in from anywhere in the world. It can cover large project area and unlimited users. It can control unlimited valves, pumps etc. It can take inputs from any sensor. No electrical source required to operate the valves. All IrriConnect PRO are solar powered.
Some of the software features of Irricare Global are, Only authorised user can access to his authorised areas for example, a farmer can see only his farm whereas a project supervisor can view entire project area (multiple farms). User gets SMS alerts for his valve opening and closing and the operation schedules. Multiple dashboard, user can view status of his authorised area. Graphs and reports get generated automatically. Global library where user can select sensors or outputs as per his requirement. Event logbooks which logs every events like valve ON/OFF, sensor events etc. Manual override for trouble shooting. User defined rules to control the system. Flexible scheduling, user can make unlimited schedules as per crop or seasonal requirements.
Agri Park & Tissue Culture
A new protocol for banana propagation has been standardised. Pilot scale production of plants using this technology will be undertaken to evaluate the systems further. Breakthrough has been achieved in micro propagation of mango. A path breaking work in deciphering molecular biology of Banana, Pomegranate, Mango and Onion has been published in high impact journals.
Flowering time in banana (Musa spp.), a day neutral plant, is controlled by at least three FLOWERING LOCUS T homologues. Scientific Reports 7, Article number: 5935. doi:10.1038/s41598-017-06118-x.
Characterization of two TERMINAL FLOWER1 homologs PgTFL1 and PgCENa from pomegranate (Punica granatum L.). Tree Physiol.38:772-784. doi: 10.1093/treephys/tpx154.
Roles of Flowering Locus T (FT) and Terminal Flower 1 (TFL1) in flowering of mango. Acta Hort. 1183: 125131. DOI: 10.17660/ActaHortic.2017.1183.17 Characterization of mango Flowering Locus T (FT) and Terminal Flower 1 (TFL1) genes. Acta Hort. 1183:113124 DOI: 10.17660/ActaHortic.2017.1183.16.
Research on onion improvement resulted in identification new CMS lines and study of its molecular biology revealed molecular basis of CMS.
Energy Park
A) Solar Photovoltaic Module
Design & development of high efficiency (16.64%) PV module of power 325 Wp for roof-top power pack systems conducted successfully. Use of High power PV modules in roof-top power packs will reduce the overall system cost & will require less floor area for installation.
Glass to Glass modules: Glass to glass module is most suitable (compared with transparent back sheet) for solar Greenhouse applications where humidity is very high. Prototype module was prepared.
High Efficiency Passivated Emitter and Rear Cell (PERC) PV module: With standard solar cells, highest PV module wattage possible is 325 Wp. PERC is a new technology. Prototype PV module of wattage 355 Wp was made and tested at NABL accredited laboratory.
B) Solar motor & pumps
BLDC submersible motors (Canned type 4â with mechanical seal design, high efficiency and confirming to NEMA standard have been released for commercial production. The variants released commercially are 5 HP (3.7 kW) with 4,800 Wp Solar PV array, 3HP (2.2 kW) with 3,000 Wp solar PV array, 2HP (1.5 kW) with 1800 Wp solar PV array. These versatile motors are suitable for several geographical conditions and can be adapted to several pump ends as per the farmerâs pumping needs. They can be installed in bore wells, open wells, farm ponds and rivers. The motor has robust mechanical design and mechanical seals gives best life in harsh water conditions. The winding is completely sealed ina special encapsulation material for better heat dissipation and insulation. Following are further taken up for development.
Sr. No. |
BLDC submersible motor |
Particulars |
1) |
Canned type 3- of 1 HP (0.75 kW) with 900 Wp Solar PV array |
Being developed for drinking water solar pumping system |
2) |
Canned type 2- of 2 hp (1.5 kw) with concentric winding |
Under development process |
3) |
Canned type 4- of 10 HP (7.5 kW) with 9,000 Wp Solar PV array |
Under development for agricultural solar pumping system |
Sr. No. |
Other pumps |
Particulars |
1) |
AC induction submersible motor- Canned type 4- of 5 HP (3.7 kW) with 4800Wp Solar PV array |
Being developed for agricultural solar pumping system |
2) |
Helical pump ends of 1 hp & 2 hp |
In prototyping stage and intended for drinking water through solar hand pumping systems |
3) |
DC submersible solar pump set of 0.1hp |
Being developed for domestic use |
An aluminum anode for submersible pump is developed and is under field testing. Sand separator with cooling sleeve for submersible pump set is under development and intended to use in sandy water conditions for minimizing the damage to the pump.
C) Solar Photovoltaic Appliances
Development of BLDC solar pump controller of 3.6 kw is completed. Data logger has been amended to include more parameters and has been integrated in Pump controller as a single unit. Development of 7.5 kw BLDC Controller is in progress. Ratings for AC Pump controller of 5kw and 7.5 kw are completed and are released for production.
MPPT Charge controller range enhanced from 15 amps to 20 amps, and work in progress to further enhance it to 25 amps. It is integrated along with Switch Mode Power Supply (SMPS) in a single housing. Present Charge controllers suitable for Led acid batteries are amended to suit Lithium Ferrous phosphate batteries (LiFepo4). LED based Luminaries with more energy efficient LEDâs with higher illumination is developed. LED driver and LED Wattages have been increased from 12 watts to 24 watts for applications where higher light intensity is required.
Present LED luminaries are designed to charge lead acid batteries, and work is under progress to convert it to suit Lithium Ferrous phosphate batteries (LiFepo4).
LED tube lights are commercially released for Tissue culture project with different technical parameters such as wavelength with various patterns for best plant growth and minimum electric energy consumption. Different mixture of Red and Blue LED proportions are being tried out and optimum plant growth pattern have been finalized.
36) Foreign Exchange Earnings and Outgo, the details are as under
(Rs. in Million)
Sr. |
C.I.F. Value of Imports, |
2017-18 |
2016-17 |
No. |
Expenditure and Earnings of Foreign Currency |
||
a) |
C.I.F. Value of Imports Raw Materials, Components and Stores and Spares |
5,068.19 |
4,788.20 |
Capital Goods |
625.53 |
135.16 |
|
Total |
5,693.72 |
4,923.36 |
|
b) |
Expenditure in Foreign Currency (on Cash basis) |
||
i) Interest and Finance ) Charges |
428.64 |
693.02 |
|
ii) Discount/ Commission |
32.33 |
18.02 |
|
) on Export Sales |
|||
Export Selling/ Market iii) Development/ Project Expenses |
598.88 |
54.42 |
|
iv) Travelling Expenses |
28.31 |
14.37 |
|
) Law & Legal/ Professional ) Consultancy Expenses |
38.17 |
43.71 |
|
i) Testing Quality & other ) Charges |
34.03 |
102.53 |
|
Total |
1,160.36 |
926.07 |
|
c. |
Earnings in Foreign Currency |
||
FOB Value of Exports |
3,553.16 |
3,182.47 |
|
Total |
3,553.16 |
3,182.47 |
37) Acknowledgement
The Directors take this opportunity to place on record their appreciation of whole hearted support received from all stakeholders, customers and the various departments of Central and State Governments, Financial Institutions, Bankers, the Dealers and Suppliers of the Company. The Directors wish to place on record their sense of appreciation for the devoted services of all the associates of the Company.
For Jain Irrigation Systems Ltd.
Sd/- Sd/-
Anil B. Jain Ajit B. Jain
Vice Chairman and Joint Managing
Managing Director Director
Date : 13th August, 2018
Place : Mumbai
Mar 31, 2017
To the members,
We believe that greater things can be achieved when several people come together and work towards a common goal. The transparency, teamwork and collaboration within our associates not only makes us a stronger Company but makes us close-knit family. The values of our Founder and his Legacy have been carried forward through generations. And all our associates have helped us come so far. All with a deep commitment, result-orientation and a passion for a sustainable eco-system.
Together, we have crossed various milestones in the fields of Finance, Business and Technology. When such goals are achieved, they deserve to be accounted. The Board''s Report is a similar account of the past one year, coming straight from the Directors of our Company. We have a long way to achieve our goal of reaching out to a large number of small holders and help them to create prosperity while ensuring all round development and protection of our dear planet Earth.
1) Financial Highlights (Standalone)
Rs, in Million (except EPS)
Particulars |
2016-17 |
2015-16 |
Domestic Sales |
34,053 |
34,667 |
Export Sales & Services |
3,341 |
8,751 |
Other Operating Income |
1,246 |
964 |
Other Income |
1,208 |
664 |
Total Income |
39,848 |
45,046 |
Operating Profit |
7,266 |
7,508 |
Interest and Finance Charges |
3,423 |
4,285 |
Depreciation and Amortization |
1,811 |
2,293 |
Profit/(loss) before tax |
2,032 |
930 |
Provision for Tax |
||
Deferred Tax Asset/(Liability) |
216 |
295 |
Current Tax Provision |
178 |
24 |
Profit for the year |
1,638 |
611 |
Other Comprehensive Income |
(69) |
5 |
Profit for the year after other comprehensive income |
1,569 |
616 |
Profit b/f from the previous year |
22,496 |
22,158 |
Total Profit |
24,065 |
22,774 |
Dividend Paid during the year (related to previous year) |
242 |
231 |
Dividend Distribution Tax |
48 |
47 |
Transfer to General Reserve |
Nil |
Nil |
Balance carried forward |
23,775 |
22,496 |
Earnings per Share (Rs,) |
||
Basic |
3.18 |
0.88 |
Diluted |
3.18 |
0.88 |
2) Operations - and State of Affairs of the Company Standalone
The revenue including operating income remained stable during the year under review for the Company. Tissue Culture and PE Pipes segments were major growth drivers for the Company which showed the sparkling growth rate of 19.4% & 28.7%, respectively. Hi-tech Agri Input Products Division grew by around 6%, while the Plastic Products division experienced the growth of healthy 10%. Other business division grew by around 37.23%.
All the assets have been provided for with depreciation based on life of assets in line with rates prescribed in Schedule II to the Companies Act, 2013 (on a prorata basis using straight line method). The Company has also prepared the Financial Statements based on IND-AS.
The Company has reported a profit of Rs, 1,638 million for FY 2017 as against Rs, 611 million of FY 2016, recording excellent growth of 168%. Repayment of high cost loans had a positive impact on the Company''s profit and resulted in increase in profitability.
Consolidated
On Consolidated basis the revenue from operations of Rs, 69,393.2 million were recorded for FY 2017 as against Rs, 64,864.5 million for FY 2016 reflecting growth of 7.0% YoY, registering positive growth in all the business divisions. The Hi-tech Agri Input Products Division registered the growth of 6.7% on YoY basis. Plastic Division sales improved by 6.9% which was primarily driven by continued growth demonstrated by PE Pipe division in the domestic market catering to institutional customers and infrastructure solutions and also positive growth in PVC Sheets business in Ireland. Agro Processing Division i.e. JFFFL expanded by 3.5% from Rs, 15,499.2 million to Rs, 16,045.2 million. Manufacturing Expenses were recorded at Rs, 5,706.2 million for FY 2017 as against Rs, 5,451.2 million of FY 2016. Selling and distribution expenses were Rs, 4,568.9 million for FY 2017 as against Rs, 3,842.7 million of FY 2016. There was decrease in the finance cost from the level of Rs, 4,910.1 million of FY 2016 to Rs, 4,593.5 million of FY 2017, mainly due to repayment of high cost loans. Other income for the whole year FY 2017 was Rs, 612.0 million as against Rs, 332.8 million of FY 2016. Profit from ordinary activities before tax for FY 2017 was Rs, 2,407.0 million as against Rs, 635.4 million of FY 2016. Multifold improvement (3.6X) in Net profit for FY 2017 was Rs, 1,762.4 million as against Rs, 486.8 million of FY 2016.
3) Dividend and Transfer to Reserves
The Directors propose to shareholders a Dividend on Ordinary Equity Shares and DVR Equity Shares of Rs, 2 each, (details as follows) involving an outlay of Rs, 360 Million to all eligible shareholders, and Rs, 73 Million of Dividend Distribution Tax, for year ended 31st March, 2017:
Particulars of Equity Shares |
Amount (Rs,) |
37.5% (Rs, 0.75 per share) on 46,01,66,053 Ordinary Equity Shares of Rs, 2 each |
345,124,540 |
37.5% (Rs, 0.75 per share) on 19,294,304 DVR Equity Shares of Rs, 2 each |
14,470,728 |
Total |
359,595,268 |
Dividend Distribution Tax @ 20.358% |
73,205,135 |
Total |
432,800,403 |
4) Dividend Distribution Policy
The Securities and Exchange Board of India (''SEBI'') via its notification dated 8th July, 2016, made it mandatory to the top 500 listed entities (based on the market capitalization calculated as on 31st March of every financial year) to formulate a Dividend Distribution Policy and disclose the same in their annual reports and on their websites. In terms of the above requirement, the Board of Directors of the Company have formulated a Dividend Distribution Policy (''the Policy''). As per the policy, the Company endeavors to pay dividend up to 25% of profit after tax of the Company (as determined by the Board of Directors and approved by the shareholders) subject to the applicable rules and regulations. The detailed policy is available on our website http://www.nseprimeir. com/z_JISLJALEQS/files/JISL_Dividend_Policy.pdf
5) Fund Raising
Jain International Trading B.V. (the Company) Wholly Owned Subsidiary (WOS) of the Company has priced $ 200 million 5-year (non-call 3 year) senior unsecured Notes offering at 7.125% per annum, due February 2022 (the Notes). This issue marked successful debut of Jain Irrigation in the U.S. dollar bond markets. The Notes have been rated B by S&P/ B by Fitch. The Company has repaid high cost borrowings both Overseas and Indian from proceeds of the Bond Issue. The Bonds are guaranteed by Indian Parent Company and are listed and traded at Singapore Stock Exchange.
6) Credit Rating
a) Credit Analysis and Research Limited ("CARE Ratingsâ) in June 2017 revised the Corporate Credit Ratings of the Company as follows;
i) CARE A: Stable (Single A Minus; Outlook: Stable) for long term bank facilities (Term Loan) from CARE BBB Stable.
ii) CARE A: Stable (Single A Minus; Outlook: Stable) for long term bank facilities (Fund based) from CARE BBB Stable.
iii) CARE A2: for short term bank facilities (Non Fund based) from CARE A3 .
b) International rating agencies S&P Global Ratings and Fitch Ratings had allotted "B , Stable Outlookâ and "B Positive Outlookâ respectively, corporate ratings to Jain International Trading B.V (''JITBV''), our wholly owned direct subsidiary, for issue up to US$ 200 million of unsecured senior notes.
The main drivers for improvement in credit ratings as per rating agency are reduction in high cost loans of the Company which has resulted in savings in the finance cost, well established and experienced promoters, widespread distribution network, well diversified product offering, improvement in operating performance of the Company in FY 2017 to name a few.
7) Capacity Expansion and Capital Expenditure
The Company has continued its already pre-decided growth/ maintenance capex. The following table shows the capex incurred for maintenance and capacity expansion implemented during the year, and the resultant capacity addition in FY 2017:
Segment Name |
Unit |
Addition in Capacity for FY 2017 |
Capex FY 2017 ('' In Millions) |
MIS |
MT |
- |
281 |
Plastic division |
MT |
13,280 |
307 |
Tissue Culture |
Million Nos |
Nil |
104 |
Others & Corporate |
- |
- |
532 |
8) Other Major Developments during FY 2017
Jain Irrigation Inc., USA, Wholly Owned Subsidiary of the Company acquired technology and core team of Australian Observant Pty. Ltd. ("Observantâ). Observant is a world leader in providing in-field hardware and cloud based applications for precision farm water management. The acquisition has combined Observant''s broad field monitoring and control technology with Jain''s global irrigation manufacturing and precision agriculture technology platform to provide farmers with a broad suite of capabilities to increase crop yield while, at the same time, responsibly and profitably manage limited sources. The Company bagged order worth '' 2,844.3 million under Atal Mission for Rejuvenation and Urban Transformation ("Amrut Schemeâ), the project shall cover Bijapur and Bagalkot. The advantages and benefits of these projects include no leakages, negligible wastage, no contamination of water, assured water supply to all levels of the society, increased water use efficiency, sustainable water management system. The Company has already commissioned 24*7 water supply projects in four major cities in the State of Karnataka -Hubli, Dharwad, Belgaum & Gulbarga earlier.
Jain Farm Fresh Foods Limited
Jain Farm Fresh Foods Limited (JFFFL) became material subsidiary of the Company on 31st March, 2016 and commenced its operations in full force on the same date. FY 2017 was the first full year of operations for JFFFL. The Company recorded the revenue of Rs, 15,952.1 million for FY 2017 on Consolidated basis. Manufacturing Expenses for FY 2017 stood at Rs, 2,123.9 million. The finance cost for FY 2017 wasRs, 666.3 million. Profit before tax for the Company for FY 2017 wasRs, 864 million which was reduced to Rs, 604.9 million after the outflow of funds for taxation.
Sustainable Agro-Commercial Finance Limited (SAFL)
SAFL is focusing its activities and a NBFC promoted by Jain Irrigation operates in the rural & semi urban geographies of India. SAFL currently has its Head Office in Mumbai with 6 Zonal Offices, 24 Branches and 41 Satellite offices operating across the states of Maharashtra, Karnataka and Madhya Pradesh.
In February, 2017 SAFL received the Award - Innovative Initiative in Rural Sector. The said award was given at the Banking; Financial Services & Insurance Awards 2017 sponsored by ABP News. Further the Company has also received an award under the category Best Corporate
9) List of Awards/ Recognition - Financial Year 2016-17
The following awards and accolades were given posthumously to Late FounderShri Bhavarlal H. Jain during the fiscal 2017.
A) Late Shri Bhavarlal H. Jain
Name & Nature Award / Honour |
Instituted By |
Given By |
Akhil Bhartiya Khandesh Kohinoor Purskar |
Khandesh Ahirani Kasturi Sahitya Sanskrutik Kala Manch, Pune |
Dr. Usha Sawant, Marathi & Ahirani Writer |
Award for Recognition at Water for Food Global Conference |
Robert B. Daugherty Water for Food Institute at the University of Nebraska |
Dr. Hank M. Bonds, President, University of Nebraska Devoted to Gandhian Principles Pioneer in High-Productivity Irrigation |
Lifetime Achievement Award |
Indian Society of Alliums; National Research Centre for Onion & Garlic; National Horticultural Research and Development Foundation; Bejo Sheetal Bio-Science Foundation, Jalna |
Dr. C. D. Mayee, Ex-Chairman, Agricultural Scientists Recruitment Board |
The Company and its directors have received the following awards and accolades during the fiscal 2017.
B) Jain Irrigation Systems Limited
Name & Nature Award / Honour |
Instituted By |
Given at the hands of |
Received by |
Maharashtra Corporate Excellence Award (Maxell Award)-2017 |
Maxell Foundation |
Sam Pitroda, Indian telecom revolution and renowned technologist (Former Advisor to the Prime Minister on Public Information Infrastructure & Innovations (PIII)) |
Shri. Ashok Jain |
Uttar Maharashtra Ratngaurav'' Purskar |
Maharashtra Tourism Development Corporation |
Devendra Fadnavis, Chief Minister, Maharashtra |
Shri. Ashok Jain |
Lifetime Achievement Award-2016 |
Indian Society of Alliums; National Research Centre for Onion & Garlic; National Horticultural Research and Development Foundation; Bejo Sheetal Bio-Science Foundation, Jalna |
Dr. C. D. Mayee, Ex-Chairman, Agricultural Scientists Recruitment Board |
Shri. Anil Jain |
The Economic Times Polymers - CEO of the Year-2017 |
The Economic Times Polymers Magazine |
Economic Times |
Shri. Atul Jain |
APEDA Export Award-2014 |
Agricultural & Processed Food Products Export Development Authority, Government of India |
Ms. Rita A. Teaotia, Secretary, Department of Commerce, Ministry of Commerce & Industry, Government of India. |
Shri. Athang Jain |
APEDA Export Award-2015 |
Agricultural & Processed Food Products Export Development Authority, Government of India |
Ms. Rita A. Teaotia, Secretary, Department of Commerce, Ministry of Commerce & Industry, Government of India. |
Shri. Athang Jain |
Social Responsibility Practices. The said award was presented by BBC Knowledge at the HR Superstar Award.
During the year 2016-17, SAFLs performance was as follows:
- During the year 2016-17 SAFL made Net profit of Rs, 9.44 Crores.
- Highlights for the year ended 31st March 2017:
Particulars |
Amount (Rs, In millions) |
Applications received |
1,229.0 |
Sanctions accorded |
1,204.0 |
Disbursements effected |
1,186.0 |
Loans outstanding |
2,599.0 |
Repayment received |
810.0 |
10)0ther Major Developments Post March 2017
In April 2017 the Company was awarded the Poorigali Integrated Micro Irrigation Project by Cauvery Neeravari Nigam Limited. The project is based on the concept of "Resource to Rootâ, globally pioneered and promoted by the Company. The work order for the project valued at Rs, 5,689.54 million, the largest Micro Irrigation Project in India. In this unique project 85% water use efficiency will be achieved. More than 15,000 farmers will be benefited by this project.
In May 2017 the Company through its multi generation wholly owned subsidiary in the United States of America (USA) completed the acquisition of 80% stake in two of the United States'' largest micro-irrigation dealers i.e. Agri Valley Irrigation LLC, (AVI) and Irrigation Design and Construction, LLC (IDC). This acquisition will help JISLs USA business to become an unparalleled leader in design, construction, service and innovative Agricultural technology providing a unique platform to help growers implement state-of-the-art irrigation technology and achieve "More Crop Per Dropâ.
11)The Operations of Subsidiaries
The Statement containing salient features of the financial statements of subsidiary companies is attached in AOC-
1 at Annexure I.
Other Subsidiaries
Information on operation and financial, other subsidiaries is covered in the section MANAGEMENT DISCUSSION AND ANALYSIS elsewhere in this Annual Report.
12)Employee Stock Option Plan (ESOP)
i) ESOP -2005
The exercise of all remaining ESOP''s were completed during the fiscal 2017 and 2,946,075 shares of Rs, 2/- each were allotted on exercise of options. The Company raised an amount of Rs, 160.27 mn from the allotment of securities, which funds were utilized for working capital requirements and general corporate purposes
ii) ESOP-2011
There is no material change during the year under review in ESOP-2011. No option has been granted, neither exercise of options has taken place during the year under review, in ESOP-2011.
The Company shall at the forthcoming Annual General Meeting place before the Shareholders a certificate from the Auditors of the Company that the schemes have been implemented in accordance with SEBI Guidelines/ Regulations, relating to employees stock options as applicable from time to time, and in accordance with the resolution of the Company at its general meeting.
Further, details are disclosed on the Company''s website and a web-link thereto is i) http://www.riseprimeir. com/z_JISLJALEQS/files/Esop_Scheme_2005.zip&
H)http://www.nsepnmelr.com/z_JISLJALEQS/files/Esop_ Scheme_2011.zip
i) A description of each ESOP that existed at any time during the year, including the general terms and conditions of each ESOP, including:
Particulars |
ESOP 2005 |
ESOP 2011 |
||
Date of Shareholders approval |
30-Sep-2005 |
30-Sep-2011 |
||
Total number of options approved under ESOP |
10,000,000 |
5,356,000 |
||
Vesting requirements |
3 yrs of grant |
6 yrs of grant |
||
Exercise price or pricing formula |
'' 60.45 each |
To be decided |
||
Maximum term of options granted |
7 years |
To be decided |
||
Source of shares (primary, secondary or combination) |
Primary |
Primary and Secondary |
||
Variation in terms of options |
None |
None |
||
ii) Option movement during the year |
||||
Particulars |
ESOP 2005 |
ESOP 2011 |
||
Number of options outstanding at the beginning of the period |
2,946,075 |
- |
||
Number of options granted during the FY 2017 |
- |
- |
||
Number of options forfeited / lapsed during the FY 2017 |
||||
Number of options vested during the FY 2017 |
- |
- |
||
Number of options exercised during the FY 2017 |
2,946,075 |
- |
||
Number of shares arising as a result of exercise of options |
2,946,075 |
- |
||
Money realized by exercise of options (INR), if scheme is implemented directly by Company |
160.27 mn |
|||
Loan repaid by the Trust during the year from exercise price Received |
NA |
|||
Number of options outstanding at the end of the year |
Nil |
- |
||
Number of options exercisable at the end of the year |
Nil |
- |
||
iii) Details and disclosures in compliance with the Clause 12 of the SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 are set out in the table below:
Sr. No |
Particulars |
Lot No. 1 |
Lot No. 2 |
Lot No. 3 |
Lot No. 4 |
1) |
Employee-wise details of options granted to: |
||||
i) Senior managerial personnel (Not during the year) |
377,500 |
203,750 |
456,250 |
1,406,375 |
|
ii) Any other employee who receives a grant in anyone year of option amounting to 5% or more of option granted during that year |
- |
- |
- |
||
iii) Identified employees who were granted option, during any year, equal to or exceeding 1% of the issued capital (excluding outstanding warrants and conversions) of the Company at the time of grant |
- |
- |
- |
- |
|
2) |
Weighted average exercise price and weighted average fair values of options shall be disclosed separately for options whose exercise price either equals or exceeds or is less than the market price of the stock on the grant date. |
||||
(i) weighted average exercise price ('') |
60.45* |
60.45* |
60.45* |
60.45* |
|
(ii) weighted average fair value ('') |
35.022 |
34.954 |
55.40 |
42.22 |
|
3) |
A description of the method and significant assumptions used during the year to estimate the fair values Black Scholes Method Black Scholes Method of options, including the following weighted average information: |
||||
(i) risk-free interest rate |
7.50% |
8% |
9% |
9% |
|
(ii) expected life, (in years, average) |
4 |
4.5 |
5 |
5 |
|
(iii) expected volatility, (in months) |
6 |
6 |
6 |
6 |
|
(iv) expected dividends, and |
25% |
25% |
25% |
25% |
|
(v) The price of the underlying share in market at the time of option grant. '' per share (on non-sub divided Ordinary Equity Shares) |
410.35 |
459.40 |
630.15 |
476.20 |
* Applicable for all remaining options due to reprising as approved by the Shareholders.
iv) Details related to the Trust
(a) General information on all schemes
Sr No. Particulars |
Details |
|
1) |
Name of the Trust |
Jain Irrigation Employee Welfare Trust |
2) |
Details of the Trustee(s) |
IDBI Trusteeship Services Limited, Mumbai, Mr. Aaron Solomon, Solicitor Mrs. Snehal Walvalkar, FCA |
3) |
Amount of loan disbursed by Company/ any Company in the group, during the year |
NIL |
4) |
Amount of loan outstanding (repayable to Company / any Company in the group) as at the end of the year |
NIL |
5) |
Amount of loan, if any, taken from any other source for which Company / any Company in the group has provided any security or guarantee |
NIL |
6) |
Any other contribution made to the Trust during the year |
NIL |
(b) Brief detail of transaction in shares by the Trust
1) Number of shares held at the beginning of the year - NIL
2) Number of shares acquired during the year through
ii) Secondary acquisition - NIL
also as a percentage of paid up equity capital as at the end of the previous - NA financial year, along with information on weighted average cost of acquisition per share; - NA
3) Number of shares transferred to the employee / sold along with the purpose thereof - NIL
4) Number of shares held at the end of the year. - NIL
(c) In case of secondary acquisition of shares by the Trust. - NOT APPLICABLE
Number of Shares |
As a percentage of paid-up equity capital as at the end of the year immediately preceding the year in which shareholdersâ approval was obtained |
Held at the beginning of the year |
NIL |
Acquired during the year |
NIL |
Sold during the year |
NIL |
Transferred to the employees during the year |
NIL |
Held at the end of the year |
NIL |
13)Material Developments in Human Resource
Increased popularity of positive attitude is seen amongst the associates while addressing the workplace challenges and in augmenting the organizational performance. It can be considered as a sign of resilience. The concept advocated by the Founder of the Organization to incentivize the real performance is now taking shape amongst the various associates across the Company. It is being practiced amongst Supervisory - Managerial cadre to deal with the challenges of the business world. With regards to the skilled, unskilled workforce, we advocate the flexi job outline making them feel individually more comfortable at workplace. On the other hand, the Organization takes care of their unfulfilled responsibilities and aspirations along-with that of the other stake holders, as stipulated in paragraphs below:
Associate Engagement
Traditional approach of high performance with innovative & flexible production systems involving training and incentive schemes are in the process of evolution. For operational workforce, the flexi job outline encourages acquisition and exploration of multi-skills, as well as reduction of stress level by adopting job rotation. It is a kind of antidote for fatigue arising out of monotonousness usually felt in a continuous process. Our work culture emphasizes the balancing efforts for achievement of goal and promotes trust, organizational commitment and intrinsic enjoyment of the work.
Family Support / Medical Support
Medical support for Infertility, Eye healthcare, Knee replacement is provided & other patients with chronic ailment were supported financially. Family visits to workplace were continued by inviting 766 families with an aggregate 3,998 family members. The main objective behind the family drive was recognition by family members towards the demonstrated hard work of the working associates and its significance, creating sense of pride for all of them. Truly, it fosters the feeling of true work culture "Work is Life, life is work" an exercise of precise balancing.
Multi-purpose Hall facility with a capacity of 500 persons has been made available in Jalgaon City for marriages and other family functions of Associates and their immediate family members at a nominal charge and 18 Associates were benefited during this year.
Childrenâs Educational Development
Like every year, 123 children of associates between standard 7th to 10th have been benefited through "Vidyarthi Utkarsh Abhiyanâ with a focus on Academic & Cultural Development of children. Similarly, overall personality development residential camp for 10 days was organized for students from 7th to 10th Standard at Anubhuti International School for 106 children of associates. "Educational Scholarship Schemeâ was declared for meritorious children of associates. During year under review, 127 children of the associates were identified as beneficiary with aggregate amount of'' 3.22 million. The disbursements were made on the basis of submission of their claims.
Prevention of Sexual Harassment
The Company has already adopted and put in place a policy on prevention, prohibition and redressal of sexual harassment at workplace according to the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and rules there under. The Company stands committed on equal opportunities for employment irrespective of the candidate''s race, caste, sex, religion, colour and nationality, among others. All the employees are treated in dignified manner and the Company maintains a work atmosphere free of sexual harassment whether physical, verbal or psychological. A programme was conducted during the year under review by the Company to spread awareness about prevention of sexual harassment.
Social Involvement
Emergency services such as Fire extinguishers, Ambulance services in case of road accidents in and around each manufacturing site across the Country have been made available on demand. Special drives were organized for Eye health checks & Cataract surgeries in collaboration with Kantai Netralay for the resident of adjacent villages at Jalgaon, Maharashtra.
Company has organized blood donation camps at periodic intervals for the Blood banks in operating local area. Record number of blood units were donated. These
2 programs were conducted twice in a year at various locations such as Plastic Park, Agri Park at Jalgaon (Maharashtra), Food park at Chittoor (Andhra Pradesh) & Padra (Vadodara - Gujrat), Plastic Park at Hyderabad (Telangana), Alwar (Rajasthan) & Udumalpet (Tamil Nadu) the total number of units donated blood aggregated to 2,804. It is noteworthy to mention that 2 adjacent districts Blood banks were invited at Jalgaon (Maharashtra) for collection of donated units, during these 2 drives.
Exhaustive courses were organized for creating the sense of responsibility to foster the feeling of performance delivery. Apart from the local Orientation programs, few associates of Managerial & Supervisory cadre were nominated to external trainings, seminars & workshops with the objective of core & multi skill set development. Behavioural & soft skill programs along-with technical courses nomination was done during this year as a routine exercise. The total number of 2,974 Man-days involving training of 17,012 associates was conducted during the year under review. The associates were nominated from cross functions with the objective of multi skill set development.
Similarly, felicitated Ettari (G. D. Nellore -Dist ) students securing highest marks in Math & Science group at SSC level. We also organized yearly ceremonies at Chittoor in Andhra Pradesh and gave donations for Gangamma, Christmas & Ganesh Festivals, Help for the old age home for Women, Local Spiritual institutions and social groups etc. Social, cultural & sports events were organized, such as we sponsored an event with the help of Chittoor Olympic Association to felicitate 1st Indian Female Wrestler and Olympic Bronze medallist Ms. Sakshi Malik during competition for Indian National Championship (Male/Female) for Wrestling. Company also contributed to Development of Water Storage facility at Dhobi Kuwa (Village) in Padra Taluka in Vadodara district. On the occasion of Independence Day and Republic Day sweets were distributed in 2 local schools at Dhobikuwa & Timbipura in Padra Taluka (Vadodara - Gujarat).
Training
Training is a continuous process to sharpen the performance/skills of associates and it continues at all our locations of the Company, all the time. The brief about location and program-wise training is as under:
Associates Training FY 2016-17
Location |
In House Training Orientation |
Orientation |
External Institute |
Total no of participants |
Total Man Hours |
|||
No. of participants |
Duration (Hours) |
No. of participants |
Duration (Hours) |
No. of participants |
Duration (Hours) |
|||
Jain Plastic Park Jalgaon |
8,566 |
36,328 |
159 |
10,176 |
30 |
406 |
8,755 |
46,910 |
Jain Green Energy Park Jalgaon |
1,808 |
3,607 |
14 |
896 |
1 |
7 |
1,823 |
4,510 |
Jain Tissue Culture Park Jalgaon |
176 |
710 |
1 |
64 |
- |
- |
177 |
774 |
Jain Farm Fresh Foods Ltd. Jalgaon |
348 |
1,413 |
3 |
192 |
6 |
126 |
357 |
1,731 |
Jain Plastic Park Hyderabad |
706 |
2,159 |
1 |
64 |
- |
- |
707 |
2,223 |
Jain Plastic Park Alwar |
337 |
1,214 |
- |
- |
- |
- |
337 |
1,214 |
Jain Plastic Park Udumalpet |
305 |
526 |
- |
- |
- |
- |
305 |
526 |
Jain Plastic Park Bhavnagar |
6 |
54 |
- |
- |
- |
- |
6 |
54 |
JFFFL, Jalgaon |
3,012 |
5,973 |
7 |
448 |
34 |
539 |
3,053 |
6,960 |
JFFFL, Chittoor-I & II |
658 |
1,974 |
- |
- |
4 |
56 |
662 |
2,030 |
JFFFL Vadodara |
810 |
2,299 |
- |
- |
1 |
14 |
811 |
2,313 |
Overseas Trg |
- |
- |
- |
- |
19 |
2,128 |
19 |
2,128 |
Grand Total |
16,732 |
56,257 |
185 |
11,840 |
95 |
3,276 |
17,012 |
71,373 |
Agricultural Engineersâ training 2016-17
Sr. Particulars |
No. of |
Duration |
No. of |
Duration |
Grand Total |
No |
associates |
(Hours) |
Students |
(Hours) |
(Hours) |
1 Engineer Training |
147 |
30,496 |
209 |
43,424 |
73,920 |
2 Engineer Field Training (3 months) |
- |
- |
129 |
39,728 |
39,728 |
Total |
147 |
30,496 |
338 |
83,152 |
1,13,648 |
Workforce Strength & Recruitment
Recruitment is an on-going process throughout the year in search of right people at right places which also includes the campus selection for Engineering Graduates and Post Graduates from IITs, Agricultural Universities and Colleges from all over the country. Sometimes, Walk in interviews also helped us to get good people on short notice. The recruitment was done on the basis of merit, potential, compatibility with the organizational culture, fitness with son-of-the-soil empathy. The strength of the Company in terms of man power has reached 8,135 on 31st March 2017, after gross addition of 578 during F.Y. 2016-17.
14)Remuneration Policy
The Company has put in place the Remuneration Policy for Executive Directors, Independent Directors, and KMP''s pursuant to provision of Companies Act 2013, and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and the same is annexed at http:// www.nseprimeir.com/z_JISLJALEQS/files/JISL_ APPOINTMENT_AND_REMUNERATION_POLICY.pdf.
15)Corporate Social Responsibility & Sustainability Report
a) Corporate Social Responsibility
The Company has CSR Policy in place and it was decided that the CSR activities would be conducted under the aegis of the Company directly as well as agencies including Bhavarlal and Kantabai Jain Multipurpose Foundation (BKJMF) Trust, Jalgaon and Gandhi Research Foundation (GRF), Jalgaon. CSR report is attached as Annexure II.
i) Climate Change Disclosure:
We have implemented Greenhouse Gases (GHG) Management System in all Indian manufacturing units continuously since FY 2013-14. This system follows international standard ISO 14064:2006 and annually audited by independent third party. We are accounting our complete Scope 1 and Scope 2 GHG emissions and removals and selective Scope
3 emissions under GHG management system. The results of annual GHG inventory are published in our sustainability reports http://www.jains.com/ Company/sustainabie_report.htm
ii) Climate Change Mitigation Projects:
We have five projects registered under Clean Development Mechanism (CDM) of United Nations Convention on Climate Change (UNFCCC). At the end of FY 16-17 the Company has verified 38,637 Certified Emission Reductions (CDM carbon credits) and 3,620 Voluntary Carbon Credit. All our registered CDM Projects have potential to generate 30,000 plus carbon credits per annum. Out of the five CDM projects, the solar and biogas based power generation projects are registered under Renewable Energy Certificate (REC) Scheme as well.
iii)Water Stewardship in operations:
We started implementation of international standard ISO 14046:2014 since last year. We continued our work in this direction in all Indian manufacturing units. Upon complete implementation the Water management system following guidelines of ISO 14046 will enable each manufacturing unit to know their gate to gate water foot print. This initiative is taken to systematically reduce the specific water consumption and overall water footprint.
b) Sustainability Disclosures:
Sustainability Reporting
We have been publishing sustainability report since 2009 with a biennial frequency. We have so far released three sustainability reports. Since we switched from GRI G.3.1 to G.4 guidelines and from limited to reasonable level of assurance, we invested substantial time to establish the reporting process as per changing standards. Due to this switchover our latest report covers three financial years (FY13-FY16). The external assurance as per AA1000 AS is completed by external party for our fourth sustainability report. However for the next reporting periods we will continue with our biennial reporting frequency.
All the above disclosures and projects are comprehensively reported in our latest Sustainability Report of 2013-16 which is available at our company''s website http://www.jains.com/Company/ sustainabie_report.htm
16) Directors retiring and their background
All Independent Directors have given declaration that they meet the criteria for independence as laid down under Section 149 (6) of the Companies Act, 2013, and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Shri Ajit B. Jain Joint Managing Director retires by rotation as per the Companies Act, 2013, and being eligible offers himself for reappointment, at the ensuing Annual General Meeting. The brief background of retiring director is as follows:
Shri Ajit B. Jain
Shri Ajit B. Jain is a Mechanical Engineer. As a Director, he joined the organization in 1998. He was designated as Chief Operating Officer of the Company in 2002. He has handled many responsibilities in the Company such as Business Unit Head of Micro Irrigation Division, Solar Pumping Division, Tissue Culture Division, as Head of product development & new application, Micro Irrigation, piping and Solar Pumping Systems, development and adaptation of drip technology for new crops and integration with major irrigation, leading integration of acquired entities.
Work Experience of Shri Ajit B. Jain is as follows:
Year |
Particulars |
1984 |
Joined Jain Plastics and Chemicals as a trainee in production of Pipe Division |
1985 |
Incharge of Pipe Division, Sendhwa, MP, India. Established new production facilities. |
1991 |
Incharge of Pipe Division of Tamil Nadu, India. Established new production facilities. |
1993 |
Director, Jain Plastics & Chemicals Ltd. Pipe and Papain Division at Jalgaon, India |
1998 |
Director, Jain Irrigation Systems Limited, India |
2002 |
Chief Operating Officer, Jain Irrigation Systems Limited |
2004 |
Joint Managing Director, Jain Irrigation Systems Limited, India |
17)Internal Financial Controls (âIFCâ)
The Board of Directors of the Company is responsible for ensuring that Internal Financial Controls have been laid down in the Company and that such controls are adequate and operating effectively. The foundation of Internal Financial Controls (''IFC'') lies in the Code of Conduct of the Company, policies and procedures adopted by the Management, corporate strategies, annual business planning process, management reviews, management system certifications and the risk management framework.
a) Policies and processes adopted for orderly & efficient conduct of business
The Company has formalized various policies at Board level to ensure ethical, orderly, timely, flexible and efficient conduct and control of business in all its divisions, namely Micro- sprinkler irrigation, PVC & PE piping systems, Tissue Culture, Greenhouses, bio fertilizers and green energy products, besides processing of foods and vegetables through its subsidiary JFFFL.
b) Safeguarding of assets
The Company has evolved efficient, effective mechanism for the safeguarding of its assets whether tangible or intangible, assets and property with self-control or third parties, funds or securities and negotiable instruments, employee associates. Besides providing for safety, housekeeping and security of the assets. The Assets are adequately insured against perils/happenings etc.
c) Prevention and detection of fraud and errors
The Company has an internal audit department at each of its manufacturing location, which conducts comprehensive audit of every single financial transaction, as well as reconciliation to accomplish control and to ensure prevention of fraud, and is aided by an "externalâ internal audit which reviews not only manufacturing locations but also depots/ other processes like purchase, statutory compliance, collection, foreign exchange, taxation, costing, compliance, accounting etc. The Company''s management information and accounting system also integrates internal control mechanism.
d) Accuracy and completeness of accounting records
The Company has in place fully integrated ERP system, based on SAP software, and its subsidiary''s records also get integrated while consolidating the same as per requirements of Law for the time being in force. ERP System encompasses authorization matrix and maker / checker verification to ensure transparent and timely flow of information, and recording thus creating appropriate and conductive platform for effective control and decision making. The accounting system has the provision for Audit trail and check mechanism for use by various auditors.
e) Timely preparation of reliable financial information
The Company has a robust and efficient mechanism for timely preparation of reliable financial information, within given timeliness and has a track record of submitting information without any delay to relevant authorities.
f) Monitoring and Reporting
The Company has put in place a mechanism to monitor and report exceptions on compliance requirements on an enterprise wide level. Company has already implemented an IT platform to capture non conformity and reporting to Chief Compliance Officer & Company Secretary, who is mainly responsible for the monitoring control and reporting function. In case of non-compliance despite warnings thrown up in the system, a gradual system of remedial action, warning, punishment is laid down depending on gravity and level of non-compliance and deterrent is in place for non- compliance.
18) Corporate Governance Report
The Company constantly endeavors to follow the corporate governance guidelines and best practices sincerely and disclose the same transparently. The Board is conscious of its inherent responsibility to disclose timely and accurate information regarding the Company''s operations, performance, material corporate events as well as on the leadership and governance matters relating to the Company.
The Board, at all times exercises its independence both, in letter and in spirit and the Directors fully understand their fiduciary duties. The Directors have always acted in the best interest of the Company and will continue to do so in the future. It is equally important to state that the Company has a professional and competent leadership team for the management of the business. The Board guides, supports and compliments the Management team towards achieving the set objectives to make the enterprise more sustainable and valuable in the future.
A separate Corporate Governance Report is attached as Annexure III, forming part of Director''s Report in terms SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. A Certificate from Statutory Auditors, confirming compliance of Corporate Governance code and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is also attached together with CEO Certificate/declaration.
19) Management Discussion and Analysis Report (MDAR)
As per the requirements of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 a separate Management Discussion & Analysis is given elsewhere in the Annual Report at Annexure IV.
20)Particulars of Loans, Guarantees or Investments by the Company
The details of Loans, Guarantees or Investments by the Company during the year given at Annexure V.
21)Consolidated Financial Statements
Consolidated Financial Statements are prepared in accordance with IND-AS, forms part of the Annual Report. Pursuant to Section 129(3) of the Act, a statement in Form AOC-1 containing the salient features of the financial statements of the subsidiary companies is attached to the Financial Statements. The financial statements will also be kept open for inspection by any Member at the Registered Office of the Company. In terms of requirement of the Companies Act, 2013 the financial statements of the Company, consolidated financial statements along with relevant documents are available on the website of the Company.
22)Significant, Material orders passed by the Regulators/ Court/ Tribunals
There are no material orders or judgments passed by the Regulators/ Court/ Tribunals which would impact the ''going concern'' status of the Company or its future prospects, subject to contingent Liabilities as mentioned in the notes forming part of Financial Statements.
23)Directorâs Responsibility Statement
In accordance with the provisions of Section 134(3) (c) of the Companies Act, 2013, your Directors state that:
i) In the preparation of the annual accounts, the applicable Accounting Standards have been followed except, to the extent indicated in notes;
ii) The accounting policies are selected and applied consistently and are reasonable; prudent judgments, and estimates were made so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2017, and, of the profit of the Company for the year ended 31st March, 2017;
iii) Proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of Companies Act, 2013, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
iv) The Directors have prepared the annual accounts for the FY ending 31st March, 2017 on a ''going concern basis''.
v) The Directors have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively.
24)Extract of Annual Return
Pursuant to Section 92 (3) of the Companies Act, 2013, the details forming part of the extract of Annual Return in form MGT - 9 is attached at Annexure VI.
25)Governance Disclosers Policy for Performance Evaluation
In terms of Section 178 of Companies Act 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Board had already constituted Nomination & Remuneration Committee (NRC) with three Independent Directors and one Non-Independent Director, an Independent Director being Chairman of the Committee.
Board has evolved Company''s policy for appointment and remuneration based on qualifications, positive attributes, the details of which are laid out in Appointment & Remuneration Policy at http://www.nseprimeir. com/z_JISLJALEQS/files/JISL_APPOINTMENT_AND_ REMUNERATION_POLICY.pdf
Board Evaluation
Pursuant to provisions of the Companies Act, 2013 and sub Regulation (3) and (4) of Regulation 25 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 a separate meeting of Independent Directors was held to review the performance of Chairperson, Executive Directors and the Board as a whole on 16th October, 2016 at Mumbai.
The Nomination and Remuneration Committee had already evolved the policy for performance evaluation of Executive Directors, Independent Directors, Board Subcommittees and the Board as whole.
The criteria for performance evaluation of the Board included, aspects like Board composition and structure; effectiveness of Board processes, information and functioning etc. The criteria for performance evaluation of Committees of the Board included, aspects like composition of Committees, effectiveness of Committee meetings etc. The criteria for performance evaluation of the individual Directors included, aspects on contribution to the Board and Committee meetings, like preparedness on the issues to be discussed, meaningful and constructive contribution and inputs in meetings etc. In addition the Chairperson was also evaluated on the key aspects of his role. The Nomination and Remuneration Committee and Board have amended these processes in fiscal 2017 to bring them in line with SEBI (LODR), 2015 amended during the year.
26)Familiarization programme for Independent Directors (IDâs)
The Company has arranged for visit of Directors to make the IDs aware of their roles; rights and responsibilities in the Company as well as the industry in which the Company operates; business model of the Company, and also their role in governance matters. All Directors are aware about Company and are always updated through site visits about new developments. Since all Independent Directors are appointed for last 3 years no separate visits for familiarization were organized this year.
27)Vigil Mechanism
The Company has adopted a Whistle Blower Policy to provide a mechanism to all employees, to report their concern about suspected fraud or violation of Company''s ethics policy, code of conduct. The policy provides direct access for employees to Chairman of Audit Committee and it is affirmed that no personnel of the Companies has been denied access to the Audit Committee. The policy of vigil mechanism is available on the Company''s website and web-link there to is http://www.nseprimeir.com/z_ JISLJALEQS/files/WHISTLE_BLOWER_POLICY.pdf
28)Directors Remuneration
The information / disclosures necessary under Schedule V, Part II, provisions of Section II B (IV) of the Companies Act 2013 are attached at Annexure VII to this report. Also the information pursuant to Section 197 of the Companies Act 2013, read with Rule 5 (1) of the Companies (Appointment and Remuneration of Managerial Person) Rules, 2014 are given in Annexure VIII to this Report.
29)Contracts or arrangements with related parties
The Contracts and Arrangements entered into during the year with Related Parties were on arm''s length basis, in compliance with the applicable provision of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015.
There are no "materially significant" Related Party Transactions entered into by the Company with Promoters, Directors, KMP''s which may have potential conflict with the interest of the Company. All Related Party Transactions are placed before the Audit Committee, which Comprises of Mr. Ghanshyam Dass, Mr. Vasant V. Warty, Smt. Radhika Pereira (being the ID''s) of the Company for its approval. The Audit Committee also reviews on quarterly basis all preapproved Related Party Transactions during the quarter. The Company had adopted Related Party Policy. The policy approved by the Board is available on Company''s website and web-link there to is http://www.nseprimeir. com/z_JISLJALEQS/files/Policy_on_MateriaHty_and_ Dealing_ with_ Related_ Party_ Transactions.pdf. The Company has transactions with subsidiaries in ordinary course of the business for some of the export-import related transactions for details please refer Annexure IX.
30)Environment Health and Safety performance
The Company has implemented Quality, Environment, Occupational Health and Safety Integrated Management System (IMS) with certifications, and the same is maintained with continual improvement at all locations including Jalgaon, Vadodara, Chittoor, Hyderabad, Udumalpet, Alwar and Bhavnagar plants. During FY 2016-17, the IMS recertification with up-gradation to the revised standards ISO 9001:2015 & ISO 14001:2015 was done for the Alwar, Bhavnagar and Hyderabad plants and Company has received the IMS certification from TUVNORD for the same.
Rain water harvesting is done from one more zone in the factory open area, as well as from roof top in buildings, and the same is used for recharging of wells through suitable structures. Fire hydrant systems at Plastic Park, Jalgaon and Hyderabad have been made fully operational, covering entire plastics manufacturing facilities. Fire hydrant system installation work has started for the Jain Farm Fresh Food Limited facility at Jain Valley; and it is expected to be operational during next financial year. Smoke detection and alarm system is installed to cover the entire administration building and HR office buildings. Some of the safety measures taken in the manufacturing facilities during the year under review are given below:
- Modified mechanism in sheet cutting resulted in elimination of noise and dust generation.
- Automatic PVC resin supply and weighing facility completed for mixers helped in reduction of dust. Spillage of chemical eliminated by liquid weighing system PVC Sheet plant.
- In Driptech plant platform provided for Conair material feeder for safety during maintenance.
- Water collection and reuse system provided at field puncture test for water saving in Driptech plant.
- In Injection moulding plant safety gate with modified design provided for better operator safety.
- In PVC Pipe plant water softener designed and installed and 20-30% water saving achieved.
- Welding curtains provided as barrier between welding operation and surrounding workplace and sensor based alarm provided at robot welding operation area in filter manufacturing plant.
- Vacuum loaders installed on Injection moulding Machines for automatic and safe raw material loading in SWR fitting plant.
- In socketing machine, guards equipped with proxy limit switch for enhanced safety.
- Awareness campaigns and trainings organized during National Safety week, Fire Safety week & World Environment Day. Plantation is done in premises and roadside during rainy season and on World Environment Day.
- Water, Sanitation and Hygiene (WASH) program initiated and implementation started during the year under review.
31)Fixed Deposits
The Company has not accepted, nor renewed any deposits from public, under the Companies Act, 2013 and Companies (Acceptance of Deposits) Rules, 2014, including amendments to the same. The Company had no unclaimed / overdue deposits as on 31st March, 2017.
32)Auditors
a) Statutory Audit
The Auditors, M/s. Haribhakti and Co., LLP, Chartered Accountants, Mumbai have furnished a Certificate under Section 139 of the Companies Act, 2013 that their proposed re-appointment, for 3 years if made, will be in accordance with the said provision of the Companies Act, 2013. The Audit Committee and Board have recommended that M/s. Haribhakti and Co., a firm of Chartered Accountants, Mumbai be reappointed as Statutory Auditors for a period of 3 years. The Shareholders may reappoint the Statutory Auditors as per AGM Notice sent separately. The Auditor''s Report does not contain any qualification, reservation, adverse remarks.
b) Cost Audit
Pursuant to the provision of the Section 128 of the Companies Act, 2013, the Board has appointed M/s. D. C. Dave & Co., Cost Accountants, Mumbai as the Cost Auditors for FY 2017. The Shareholders may approve the remuneration to be paid to them for FY 2016-17. Company had filed Cost Audit Report for FY 2016 in prescribed time on 25th October, 2016.
c) Secretarial Audit
Pursuant to Section 204, of Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 the Company has appointed M/s V. Laxman and Co., firm of Company Secretary in practice, to conduct Secretarial Audit of the Company for Financial Year 2017. The report of the Secretarial Audit is attached as Annexure X.
The Secretarial Audit report does not contain any qualification, reservation, adverse remarks.
33)Particulars of Employees
As per provisions of Section 134 of the Companies Act, 2013 only four persons in employment of the Company have drawn remuneration in excess of '' 850,000/- per month, during the year under review or part thereof as per details in the Annexure XI to this report.
34)Business Responsibility Report
The Securities and Exchange Board of India (''SEBI'') requires companies to prepare and present to stakeholders a Business Responsibility Report (''BRR'') in the prescribed format. SEBI, however, allows companies to follow an internationally recognized framework to report on the environmental and social initiatives undertaken by the Company. The Business Responsibility Report is included in the Annual Report elsewhere.
35)Particulars of Energy Conservation, Technology Absorption, Research and Development, Foreign Exchange Earnings and Outgo.
A] Energy Conservation 2016-17 Plastic Park
Various measures have been undertaken to save Energy during the financial year. Some of the significant energy saving measures taken in the plants are given below.
In MIS pipe plant & PVC pipe plant modification in the process was under taken and few components were installed which resulted in energy saving of about 12%.
Similarly in Drip line plant, the process modification which is synchronised with the extrusion production process resulted in energy saving of about 10%.
In PVC sheet division, modification carried out in sizing of the PVC sheets during the processing resulted in significant saving of electricity and this approach was implemented upto 30mm thick sheet production process.
In Injection moulding plant, the performance of chiller is improved by modification was which resulted in reduction in energy consumption by 10%. VFD/ servo drives were installed on five PS series machines to reduce the energy consumption by about 20 %. Insulation pads are provided to barrel heaters of bigger size injection moulding machines to reduce energy consumption by about 15% of the heating load. Mercury vapour lamps and tube lights are replaced by LED lamps to reduce energy consumption by about 45% of lighting load.
In casing pipe plant modification was done on air compressor 1250L which resulted in reduction in the energy consumption by about 20%.
The overall specific energy consumption of the MIS division, Pipe division and Sheet divisions together was reduced by 5% as compared to last financial year.
Agri Park & Tissue Culture
In tissue culture, solar water heaters have been installed to support electric boilers used for steam sterilizer to reduce electric energy. In green house, electric pumps have been replaced with solar pumps to save electric energy. Solar panels to a power production capacity of 132 KW has been installed over the roof top of secondary hardening preparatory.
Energy Park
i) Regenerative Dynamometer test Systems is introduced at BLDC motor production floor. This system converts the mechanical energy of the motor and connected load into electrical energy which is returned to the AC power source. The loading motor operates as a generator and the regenerative energy is return back into the main line power supply.
ii) Motor plant and Solar Photovoltaic Appliances plant lights replaced from CFL to LED lights.
B] Technology Absorption Energy Park
Solar Photovoltaic Module
After successful modification of Automatic Tabber & Stringer machines (2 nos) of Auto line-1 from 3 busbar to 4 busbar solar cells last year, Automatic Tabber and Stringer machines (2 nos.) of Auto line- 2 are also modified from 3 busbar to 4 busbar solar cells as per latest technology. Now both Auto lines shifted to 4 busbar solar cells. The use of 4 bus bar solar cells reduces resistance loss and improves module efficiency compared to 3 bus bar solar cells.
Solar motor & pump
BLDC motor technology is successfully used for solar water pumping systems. These motors can be submersible as well as surface types. These motors are more efficient than conventional induction motors and also have high reliability.
BLDC Surface Pump (0.5HP) design and manufacturing techniques were absorbed and introduced for production. This pump work with only 150W to 500W solar modules useful for drinking water and agriculture irrigation for small land holding farmers. Drawings and documentations are prepared and available for production.
Regenerative Dynamometer is in use for testing of BLDC motor torque, speed, current, efficiency, input output power, temperature rise and related data, during motor operation.
Fully automatic Potting machine is now operational for water ingress protection (IP).
Laser welding process is introduced for welding of low thickness sleeve and outer flanges instead of normal tag welding process. Induction heating process introduced for fixing MS sleeve on shaft instead of Hydraulic press fitting.
Laser marking introduced for printing technical parameters on motor permanently.
C) Research and Development Plastic Park
Smart Clean - Automatic Online Screen Filter
Smart Clean range of filter is an online self-cleaning automatic screen filter. Its patented technology helps to clean the plugged screen efficiently. Smart Clean filter has a rotating suction nozzle which sucks the contamination accumulated on screen of the filter. Smart Clean Filter is available in Hydraulic and Electric models and in flow variants right from 25 cu.m/hr to 1200 cu.m/hr.
Development of 36mm PVC Free foam sheet
During the year attempt was made to produce 36mm PVC free foam sheet based on customer''s requirement. Recipe and processing conditions was completely over hauled to achieve such a high thickness with good surface finish and cell structure. After various experiments and testing of the product made during the trial, recipe & processing conditions could be established for producing 36mm thickness PVC free foam sheet which is first time in India. Key to the success of this product development was to keep the foaming cell without getting collapsed as it is challenging to maintain the foamed cells without getting collapsed which is in turn is due to difficulty in removing the heat from the core part of the high thick sheets. Product made was sent to customers in USA where the product is used to replace the wood for building & construction application.
New MIS components
Various components of micro irrigation systems such as single metal clamp type QC couplers, plastic flanges - threaded & non threaded, higher diameter -140 & 160 mm PVC taile piece etc., were all developed during the year and over 100 new components of Micro Irrigation and mould components were developed and commercialized. In house commercial production process of grommets out of thermoplastic elastomeric was established and commenced production during the year.
Agri Park & Tissue Culture
Commercial tissue culture protocol for micro propagation of Coffee has been developed. Plants have been supplied to Coffee board for conducting field trial. Commercial production of the plants will be undertaken after getting field results. New training system for mango intensive cultivation is under experiment to improve productivity and reduced pruning requirement. A new onion hybrid for early Rabi season brought under commercial cultivation for processing. For efficient hybrid seed production three Cytoplasm Male Sterile (CMS) lines from three different populations were identified and characterized on genetics, molecular and biochemical aspects. Company has been able to identify key genes regulating flowering in banana, mango and pomegranate. These studies will help Company to identify and breed better varieties in future.
Energy Park
Solar Photovoltaic Module
Design & development of high efficiency (16.4%) PV module with high power 320 Wp for roof-top power pack systems. Use of High power PV modules in roof-top power packs will reduce the overall system cost & will require less floor area for installation.
Transparent PV module (Power: 250 Wp) for future Greenhouse application has been designed & developed.
Solar motor & pumps:
BLDC submersible motors: Very reliable canned type BLDC submersible motors with highest efficiency and confirming to NEMA standard have been released for commercial production. These versatile motors are suitable for several geographical conditions and can be adapted to several pump ends as per the farmer''s pumping heads. They can be installed in bore wells, open wells, farm ponds and rivers. The motor has robust mechanical design and the winding is completely sealed in a special encapsulation material. The variants released commercially are 5HP (3.7kW) with 4,800Wp Solar PV array and 3HP (2.2kW) with 3,000Wp solar PV array. Small size 1HP (0.75kW) canned BLDC submersible motor with 900Wp Solar PV array is being developed for drinking water solar pumping system. Its prototypes are undergoing field testing.
Medium size 2HP (1.5kw) canned BLDC submersible motor with 1,800Wp Solar PV array is being developed for irrigation water solar pumping system. Its prototypes are under development.
Development of pump ends and helical pumps for drinking water solar hand pumping systems are in prototyping stage. Solar Photovoltaic Appliances
BLDC solar pump controller 2kw development is completed. Controller housing has been modified with a separate compartment inside housing for ease of commissioning and servicing along with provision of an emergency switch for isolation. Present Data logger has been upgraded to include SD card for data downloading.
LED tube lights are commercially released for Tissue culture project with different technical parameters such as wavelength with various patterns for best plant growth and minimum Electric energy consumption.
Solar Pump controller and streetlight has passed all EMI/EMC (Electromagnetic interference/Electromagnetic compliance) tests, which are prerequisites for CE mark.
MPPT Charge controller range enhanced from 10 amps to 15 amps along with Switch mode power supply (SMPS) which is provided as a backup for solar.
LED based Luminaries with more energy efficient LED''s with higher illumination is developed. Mobile charger facility has been added in Lantern.
36) Foreign Exchange Earnings and Outgo C.I.F. Value of Imports, Expenditure and Earnings of Foreign Currency
(Rs, in Millions)
Sr. No. Particulars |
2016-17 |
2015-16 |
|
a) C.I.F. Value of Imports |
|||
Raw Materials, Components and Stores and Spares |
4,788.20 |
4,360.64 |
|
Capital Goods |
135.16 |
78.32 |
|
Total |
4,923.36 |
4,438.96 |
|
b) Expenditure in Foreign Currency |
|||
i) |
Interest and Finance Charges |
693.02 |
590.21 |
ii) |
Discount/ Commission on Export Sales |
18.02 |
57.84 |
iii) |
Export Selling/ Market Development |
54.42 |
35.89 |
iv) |
Travelling Expenses |
14.37 |
28.06 |
v) |
Law & Legal/ Professional Consultancy Expenses |
43.71 |
41.09 |
vi) |
Testing Quality & other Charges |
102.53 |
60.49 |
Total |
926.07 |
813.58 |
|
c) Earnings in Foreign Currency |
|||
FOB Value of Exports |
3,182.47 |
8,520.14 |
|
Total |
3,182.47 |
8,520.14 |
Standalone financials for FY 2016-17are not comparable as FY 2016-17 does not include Agro Processing Division.
37) Acknowledgement
The Directors take this opportunity to place on record their appreciation for the whole hearted support received from all stakeholders, customers and the various departments of Central and State Governments, Financial Institutions, Bankers, the Dealers and Suppliers of the Company. The Directors wish to place on record their sense of appreciation for the devoted services of all the associates of the Company.
For Jain Irrigation Systems Ltd.
Sd/- Sd/-
Anil B. Jain Ajit B. Jain
Vice Chairman and Managing Director Joint Managing Director
Date: 14th August 2017
Place : Mumbai
Mar 31, 2015
Dear Members,
The Directors present their report on the financial performance,
business and operations of the Company for the year ended 31st March,
2015.
1. Financial Highlights Rs. in Million (except EPS)
Particulars 2014-151 2013-14
Domestic Sales 32,535 30,754
Export Sales & Services 8,811 9,754
Other Operating Income 1,424 1,267
Sales and Operating Income 42,770 41,775
Operating Profit 6,703 6,885
Interest and Finance Charges 4,002 3,908
Depreciation and Amortisation 1,785 1,413
Profit before taxation and 916 1,564
exceptional items
Exceptional Items (Forex) 567 1,865
Profit/(loss) before tax 349 (301)
Provision for Tax
Deferred Tax Asset/(Liability) (150) (414)
Current Tax Provision 1 74
Profit for the year before Prior 498 39
Period Expenses
Prior Period Items-Income/ 4 -
(Expenses)
Profit for the year 494 39
Profit b/f from the previous year 8,087 8,345
Balance available for 8,581 8,384
Appropriation
Out of which the Directors have
appropriated as under;
Proposed Dividend 231 231
Dividend Distribution Tax 47 39
Transfer to General Reserve Nil 27
Balance carried forward 8,303 8,087
Earnings per Share (Rs.)
Basic 1.07 0.09
Diluted 1.071 0.09
2. Operations - Standalone, and State of Affairs of the Company
The revenue including operating income increased from Rs. 41,775
Million in FY14 to Rs. 42,770 Million in Financial Year 2015,
reflecting an increase of 2.4%, due to increased contribution by Onion
Dehydration segment by 38%, Fruit processing by 18.2%, Tissue Culture
by 18.2% and MIS by 6.9% on a YoY basis.
The Hi-Tech Agri Irrigation Input Products segment reported a 3.8%
growth at Rs. 27,175 Million in FY 2015, against Rs. 26,175 Million in
FY 2014. The Industrial products division grew at a slightly better
3.9% in FY 2015 reporting revenue at Rs.13,977 Million in FY 2015
against Rs. 13,449 Million in FY 2014. The Green Energy products
de-grew 28.5%, due to conscious management decision to concentrate on
cash flow rather than revenue growth, and reported revenue of the
Rs.1,266 Million as against Rs.1,770 Million for FY 2014.
The Company has changed the method of depreciation as per the related
provision of Companies Act, 2013, which is now based on useful life of
assets.
The Company has adjusted deferred tax of Rs. 151 Million due to certain
exemptions/ non-taxable income under Income Tax Act, 1961, like
incentives from Government under mega project, exemptions for renewable
energy & food business, deduction for R&D etc. available to the
Company. Hence, the PAT of Rs. 494 Million in FY 2015 is higher than
the PBT Rs. 349 Million in FY 2014.
3. Dividend and Transfer to Reserves
The Directors propose to shareholders a Dividend on Ordinary and DVR
Equity Shares of ' 2 each, (details as follows) involving an outlay of
Rs. 231 Million to all eligible shareholders, and ' 47 Million of
Dividend Distribution Tax, for year ended 31st March, 2015:
Sr
No Particulars of Equity Shares Amount (Rs.)
1 25% (Rs. 0.50 per share) on 221,559,989
443,119,978 Ordinary Equity
Shares of Rs. 2 each
2 25% (Rs. 0.50 per share) on 9,647,152
19,294,304 DVR Equity Shares
of Rs. 2 each
Total231,207,141
3 Dividend Distribution Tax @ 47,069,150
20.358%
Total 278,276,291
The Board of Directors has not transferred any amount to General
reserves of the Company during the year under review.
4. Fund Raising
During Financial Year 2015 the Company has maintained its working
capital facilities at same level but has raised long term funds from
lenders as under;
Sr. Name of Amount Raised Nature of
No. Lender (Rs. in Million) Lending
1 IFCI Ltd. 1,000 Corporate Loan
2 UBI 500 Corporate Loan
3 Yes Bank Ltd. 1,000 Corporate Loan
The funds raised have been utilised for augmenting net working capital
and as a result the long term resource base of the Company has become
stronger.
5. Credit Rating Agency
Following are Long Term and Short term credit ratings of the Company
issued by India Ratings (part of the Fitch Group.)
Amount Nature of Rating Outlook
Facility
Rs. 4.08 billion Long Term Debt INDBBB- Stable
Rs. 16.00 billion Fund based IND A3 Stable
Working Capital
Rs. 12.90 billion Non-Fund based IND A3 Stable
Working Capital
6. Capacity Expansion and Capital Expenditure
The Company has continued its already pre-decided growth/ maintenance
capex, and the following table gives the capex incurred for maintenance
capex and capacity expansion implemented during the year, and the
resultant capacity addition in FY 2015:
Addition in Capex FY
Sr Segment unit capacity for 2015
No name FY 2015 (Rs. in Million)
1. MISMT MT 880 139
2. Piping Systems MT 1,490 83
3. Dehydrated MT - 78
Vegetable
4 Fruit Puree MT - 290
5. Tissue Culture Million. 20 210
Nos
6. Other & Corporte - - 214
Corporate
Total 1,014
7. Other Major Developments During FY 2015
a) Key Managerial Personnel
During the year under review the Company has designated the following
personnel as key managerial person under Section 203, of the Companies
Act, 2013 read with Section 2 (51)
Sr. Name of the
No. Director's/KMP's Designation
1 Mr. Ashok Bhavarlal Jain Vice-Chairman
2 Mr. Anil Bhavarlal Jain Managing Director
3 Mr. Ajit Bhavarlal Jain Joint Managing Director
4 Mr. Atul Bhavarlal Jain Joint Managing Director
5 Mr. R Swaminathan Executive Director
6 Mr. A. V. Ghodgaonkar Company Secretary
7 Mr. Manoj L. Lodha Chief Financial Officer
b) Sustainable Agro-Commercial Finance Limited (SAFL)
The Company's subsidiary SAFL, has ceased to be a subsidiary w.e.f.
March 31st, 2015. A brief on said associate entity's operations are as
under:-
Recently, in end of March 2015, Mandala Capital Ltd, (and funds
managed by it) an agri business focused private equity fund, has
invested in SAFL to the extent of 20% of the total equity capital.
The current equity subscription is Rs. 1,200 Million, with the Company
holding 49%, Promoter Group (Jain Family) holding 21%, Mandala Capital
holding 20% while IFC holds 10% equity share capital. SAFL is focusing
its activities on as agri lending only, and operates in the rural &
semi urban geographies of India. SAFL's launch is a new milestone in
the thinly populated space of private sector financing of agriculture.
SAFL finances products which result in increased farm productivity and
improvement in income of farmers. The lending is in the nature of asset
financing and registered mortgage on the agricultural land holding is
obtained as collateral Security as a general rule.
During the year 2014-15, SAFL's performance details are as follows:
* Net profit (Pre tax) of Rs. 0.2 Million.
* Highlights for the year ended March 31, 2015:
Rs. In Million
Sr Particulars Nos. Amount
No.
1 Applications received 7,640 1,001
2 Sanctions accorded 7,210 970
3 Disbursements effected 6,494 952
4 Loans outstanding 13,450 1,564
5 Repayment Received - 423
9. Other Major Developments Post March 2015 Postal Ballot
The Board is in process of obtaining Shareholders' approval u/s 180 (1)
(a) of the Companies Act, 2013 via Postal Ballot, for sale of Indian
Food business to its effective Wholly Owned Subsidiary, Jain Farm Fresh
Food Limited (JFFFL), for a consideration in the range of Rs. 4,000
Million to 6,000 Million, subject to working capital adjustment. Post
obtaining the approval in the end of September 2015 the Board or its
sub Committee shall take actions to close the Slump Sale transaction.
10. The Operations of Holding Subsidiaries
The Mauritius based subsidiary of the Company has earned revenue $
436,057, mainly through interest and has earned a profit of $ 17,994 at
the net level.
The Netherlands based subsidiary has earned revenue of $ 1,897,391,
while incurring a loss of $ 504,121.
There is no change in capital structure of the both subsidiaries;
neither there is any change in Wholly Owned nature of subsidiaries,
except that recently in June 2015, Shares of Jain Sulama Sistemleri San
Ve Tic A S have been acquired by Naandan Jain Irrigation Limited, Israel
way of transfer of Shares.
The Statement containing salient features of the financial statements
of subsidiary companies is attached in AOC-1 at Annexure I.
Other Subsidiaries
Information on operation and financial, other subsidiaries is covered
in the section MANAGEMENT DISCUSSION AND ANALYSIS elsewhere in this
Annual Report.
11. Employee Stock Option Plan (ESOP)
There is no material change during the year under review in either
ESOP-2005 or ESOP-2011. No option has been granted, neither exercise of
options has taken place during the year under review, in either
ESOP-2005 or ESOP-2011.
The Shareholders as well as Board of Directors have approved ESOP-2011
with 5,356,000 options through Trust route and Trustees are an
independent professional corporate and two professionals, and the
Trustees shall administer the scheme under the guidance of Nomination &
Remuneration Committee. The Company shall at the forthcoming Annual
General Meeting place before the Shareholders a certificate from the
Auditors of the Company that the schemes have been implemented in
accordance with SEBI Guidelines/ Regulations, relating to employees
stock options as applicable from time to time, and in accordance with
the resolution of the Company at its general meeting. Further, details
are disclosed on the Company's website and a web-link thereto is
http://www. nseprimeir. com/z JISLJALEQS/files/Esop Scheme 2011.zip &
http://www. nseprimeir. com/z JISLJALEQS/files/Esop Scheme 2005.zip
(i) A description of each ESOS that existed at any time during the
year, including the general terms and conditions of each ESOS,
including
Sr. Particulars ESOP ESOP
No. 2005 2011
1 Date of Shareholders approval - -
2 Total number of options approved 10,000,000 5,356,000
under ESOS
3 Vesting requirements 3 yrs. of -
grant
4 Exercise price or Rs. 60.45
pricing formula each To be
decided
5 Maximum term of 7 years
options granted
6 Source of shares Primary and
(primary, secondary Primary secondary
or combination)
7. Variation in terms of None None
options
ii) Option movement during the year
Sr ESOP - ESOP -
No. Particulars 2005 2011
1 Number of options
outstanding at the - -
beginning of the period
2 Number of options
granted during the FY - -
2015
3 Number of options
forfeited / lapsed during - -
the FY 2015
4 Number of options
vested during the FY - -
2015
5 Number of options
exercised during the FY - -
2015
6 Number of shares
arising as a result of - -
exercise of options
7 Money realized by exercise of
options (INR), if scheme is - -
implemented directly by
Company
8 Loan repaid by the Trust during - -
the year from exercise price received
9 Number of options
outstanding at the end 2,946,075 5,356,000
of the year
10 Number of options
exercisable at the end 2,946,075 5,356,000
of the year
iii) Details and disclosures in compliance with the Clause 12 of the
SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme)
Guidelines, 1999 are set out in the table below:
Sr. Particulars Lot Lot Lot Lot
No. No.1 No. 2 No. 3 No.4
1. Employee-wise details of
options granted to:
i) Senior managerial 377,500 203,750 456,250 456,250
personnel (Not
during the year)
ii) Any other employee who - - - -
receives a grant in
anyone year of option
amounting to 5% or
more of option granted
during that year
iii) Identified employees who
were granted option,
during any year, equal
to or exceeding 1%
of the issued capital
(excluding outstanding
warrants and conversions)
of the Company at the
time of grant
2. Weighted average exercise
price and weighted average
fair values of options shall
be disclosed separately
for options whose
exercise price either
equals or exceeds or is
less than the market
price of the stock on the
grant date.
(i) weighted average 61.552 82.692 113.60 85.80
exercise
price m (Rs.)
(ii) weighted average 35.022 34.954 55.40 42.22
fair value (Rs.)
3. A description of the method
and significant assumptions
used during the year to
estimate the fair values
Black Scholes Method Black
Scholes Method of options,
including the following
weighted average information:
(i) risk-free interest rate 7.50% 8% 9% 9%
(ii) expected life, 4 4.5 5 5
(in years, average)
(iii) expected volatility, 6 6 6 6
(in months)
(iv) expected dividends, and 25% 25% 25% 25%
(v) The price of the 410.35 459.40 630.15 476.20
underlying share in
market at the time of
option grant. Rs. per
share (on nonsub
divided Ordinary Equity
Shares)
(iv) Details related to the Trust
(a) General information on all schemes
Sr Particulars Details
No
1 Name of the Trust Jain Irrigation Employee
Welfare Trust
2 Detail of the Trustee(s) IDBI Trusteeship Services
Limited,
Mumbai, Mr. Aaron Solomon,
Solicitor
Mrs. Snehal Walvalkar, FCA
3 Amount of loan disbursed NIL
by Company/ any Company in the
group, during the year
4 Amount of loan outstanding NIL
(repayable to Company / any
Company in the group) as at
the end of the year
Amount of loan, if any, taken
from any other source for which
5 Company / any Company in the group NIL
has provided any security NIL or
guarantee
6 Any other contribution made to the NIL
Trust during the year
(b) Brief detail of transaction in shares by the Trust - NIL
1. (a) Number of shares held at the beginning of the year - NIL
2. (b) Number of shares acquired during the year through -
(i) Primary issuance - NIL
(ii) Secondary acquisition - NIL
also as a percentage of paid up equity capital as at the end of the
previous financial year, along with information on weighted average cost
of acquisition per share;
3. (c) Number of shares transferred to the employee / sold along with
the purpose thereof- NIL
4. (d) Number of shares held at the end of the year. NIL
(c) In case of secondary acquisition of
shares by the Trust.- NOT APPLICABLE.
As a percentage of paid-up equity
capital as at the end of the year
Number of shares immediately preceding the year in
which shareholders' approval was
obtained
Held at the beginning of the year NIL
Acquired during the year NIL
Sold during the year NIL
Transferred to the employees nil
during the year
Held at the end of the year NIL
12. Material Developments in Human Resource
For Jain Irrigation Systems Ltd., an Associate is more than a worker or
an employee. He possesses common approach and helps achieve common
purpose. Importantly, he is a person who is in agreement with plans and
policies of the organization. He is an important stakeholder and a
colleague. He is owner of his work.
Associate Engagement
Various HR initiatives have been adopted by the Company to bring the
feeling of "Organization as a large family under one roof" not only to
the associates but their family members in a systematic manner.
Infertility is an issue which does not get addressed properly because
of lack of guidance and shyness of the people suffering. Many people
give up and leave the hope due to shyness and / or improper guidance.
Company has identified such associates and with proper counseling and
treatment, during this year, 45 associates are undergoing treatment and
4 families could enjoy the success of the program immediately with 4
female babies and 1 male baby (including one Twins) with a hope to get
the success for remaining.
Like every year, 134 children of associates (between standard 7th to
10th) have benefited through "Vidyarthi Utkarsh Abhiyan". Apart from the
academic curriculum, a thrust was given on overall personality
development and a 10 day residential "Personality Development Camp" was
organized for students from 7th to 10th Standard at Anubhuti
International School for 111 children of associates.
Educational scholarship for children of associates continued this year
too. During this year, we selected two institutes namely GTTI,
Coimbatore and IGTR, Aurangabad for giving high skill training to the
children of our associates and deputed 12 & 6 students respectively.
Also selected 15 deserving and needy children of associates on need and
merit basis and helped them with scholarships. Total 35 children
received scholarship worth Rs. 188 Million. Also covered few children of
associates in low income group even though not meritorious, to encourage
them to further study.
To make a family proud of the role their family member is playing in
the progress of the Company, visits of family members of the associates
are conducted to all Company locations in Jalgaon. Apart from visiting
the complete set up of the factory, it gives them the information about
the importance of job, their family member is carrying out and how
important it is in the chain of activities. Also they are given
information about the unique work culture of the organization i.e.
"Work is Life". Total 146 visits have been organized during whole year
which covered 1,236 Associates and their family members totaling to
6,696 total visitors.
We have also tied up with a departmental store for providing the
Groceries and daily use items to the associates on credit and 1,818
associates were benefitted with this activity during this year.
The Company has made available one multi-purpose hall with a capacity
of 500 persons in the Jalgaon City for the marriage and other family
functions of Associates and their immediate family members at a nominal
charge and 30 Associates were benefitted during this year.
Social Involvement:
We cannot produce Blood in labs and but blood is very much important to
save a life of someone. Once again on demand of the blood banks, blood
donation camps were organized twice at 6 months intervals wherein 2,751
units of blood were donated by associates. This time apart from
Jalgaon, we have organized blood donation camp across all our
manufacturing locations which include, Chittoor, Hyderabad, Udumalpet,
Alwar, Baroda & Bhavnagar.
Training:
The Agricultural Universities have made it compulsory for the
"Agricultural Engineering" students to have 16 week industrial
training. The Company has taken this opportunity to train these
students for one month on the premises and rest three months on the job
training in Agriculture. Thus the students get exposed to Survey,
Design, Installation, Maintenance of Micro Irrigation Systems and Field
Operations. This training gives them the real experience and those who
proved themselves during training, were absorbed by the Company in
employment on being trained successfully.
Training is a continuous process for increasing performance / skills of
associates, and it continues at all our locations all the time. The
location and program-wise training details are as under:
Associates Training 2014-15
Sr In House Training
No Location No. of No. of Duration
Programs Associates (Man Hours)
1 Agri Park 45 798 1,774
2 Plastic Park 608 9,217 43,914
3 Food / Energy Park 146 3,984 11,007
4 Orientation 9 346 19,376
5 Overseas Training - - -
Total 808 14,345 76,071
Sr External Institute Total
No Location No. of No. of Duration Man
Programs Associates (Man Hours) Hours
1 Agri Park 8 13 308 2,082
2 Plastic Park 34 100 1,722 45,636
3 Food / Energy Park 37 99 1,246 12,253
4 Orientation - - - 19,376
5 Overseas Training 3 31 2,864 2,864
Total 82 243 6,140 82,211
Agricultural Engineers' Training 2014-15
Sr In House Training
No Location No. of No. of Duration
Programs Associates (Man Hours)
1 Engineer Training 11 147 30,5766
2 Engineer Field - - -
Training (3 months)
Total 11 147 30,5766
Sr External Institute Total
No Location No. of No. of Duration Man
Programs Associates (Man Hours) Hours
1 Engineer Training 6 205 42,640 73,216
2 Engineer Field - 92 32,959 32,656
Training (3 months)
Total 6 297 75,296 1,05,872
Prevention of Sexual Harassment
The Company has already adopted and put in place a policy on
Prevention, Prohibition and redressal of sexual harassment at workplace
according the provision of the Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013 and the Rules
thereunder. The Company stands committed on equal opportunities for
employment without regard to candidate race, caste, sex, religion,
color, nationality, disability etc. All employees are treated in
dignified manner and Company maintains work atmosphere free of sexual
harassment whether Physical, Verbal, or Psychological.
Recruitment and Manpower Strength:
Recruitment is an ongoing process throughout the year in search of
right people at right place. This includes the On-Campus selection for
Engineering Graduates and Post Graduates from IIT's, Agricultural
Universities and Colleges from all over the country. Sometimes, Walk in
interview also help to get good people at short notice. The recruitment
was done on the basis of merit, potential ability, compatibility with
the organizational culture, fitness with son-of-the-soil empathy. The
strength of the Company has reached 9,179 on 31st March 2015, after
gross addition of 1,649 during FY 2014-2015 and net addition of 838.
13. Remuneration Policy
The Company has put in place the Remuneration Policy for Executive
Directors, Independent Directors, and KMP's pursuant to provision of
Companies Act 2013, and Clause 49 of Listing Agreement and the same is
annexed at Annexure II.
14. Corporate Social Responsibility & Sustainability Report
a) Corporate Social Responsibility
Corporate Social Responsibility (CSR) is fundamental to our values and
integral to our business approach. While conducting ethical business,
we stand steadfast in maintaining our responsibilities to the
communities and the environment. We have always invested in ventures
aimed at development of the agricultural sector and empowerment of the
farmers. Additionally, we have pioneered a wide range of philanthropic
initiatives for holistic development of our neighboring commune.
In the light of the requirements under the Companies Act 2013, Company
formed a three member committee chaired by Mr. B. H. Jain with Mr. D. R.
Mehta and Mrs. Radhika Pereira, being members. The committee drafted the
policy on CSR activities of Company, which was approved in the first
meeting of the committee on 11th August, 2014. It was decided that the
CSR activities would be conducted under the aegis of the Company
directly as well as agencies including Bhavarlal and Kantabai Jain
Multipurpose Foundation (BKJMF) Trust, Jalgaon and Gandhi Research
Foundation (GRF), Jalgaon. Broadly the projects approved by the CSR
committee for fY 2015-16 are:
A. Rural Development: Rural development is one of our prime CSR focus
as is enshrined in our Articles. We undertake need based interventions
as well as activities with prospective plans. The thrust of our rural
development projects encompasses promotion of preventive health care
and sanitation and making available safe drinking water to the local
people. In the past, we have also undertaken development of specified
village as a well-planned CSR activity. However, there have been few
initiatives for FY 2014-15. GRF has completed the participatory rural
appraisal of the six nearby villages of Jain Irrigation in Jalgaon and
the current expenditure under this head has been on activities in and
around Jalgaon facilities.
B. Nature Conservation and Environmental protection: Ensuring
environmental sustainability, ecological balance, conservation of
natural resources and maintaining quality of soil, air and water are
congruent to our business as well as CSR goals both. We continuously
seek opportunities to invest our efforts and capital to ingrain the
concepts of environmental sustainability amongst the farming community
and the neighborhood. Some of our activities in this context have been:
* Distribution of the saplings to residents of Jalgaon on World
Environment Day
* Awareness campaign on Biodiversity Conservation
* Supporting the activities undertaken by FALI (Future Agriculture
Leaders of India)
* Supporting educational activities for promoting modern agricultural
practices; conducting conferences etc.
* Supporting film festivals and awareness campaigns in the city for
encouraging good agricultural practices.
C. Promoting Education: We believe education is the birth right of
every individual and hence we extend our conviction by making it one of
the focus areas of our CSR efforts. Our major expenditure in this
segment is towards Anubhuti English Medium School, which provides free
education to the underprivileged children of the society at large. We
take efforts to select the needy students, i.e. children who have lost
their parents or children whose parents find it difficult to earn a
living. We pay several visits to their households and select the
deprived children after a rigorous process of interviews.
D. Promotion of the sports: We believe that sports and sportsmanship
have the power to nurture our children and contribute to their holistic
development. We promote both the nationally recognized sports and
Olympic sports. These include a range of indoor and outdoor games. Our
Jain Sports Academy, which functions under the BKJMF trust, is
responsible for co-ordinating and handling all activities related to
Sports. Most of our spending goes towards the coaching fees and payment
made to budding sportsmen and their coaches. Our expenditure on sports
has touched Rs.13.7 Million in FY 2014-15.
This apart, there are many other CSR activities undertaken by the
BKJMPF and GRF independently throughout the calendar year. Currently,
most of our activities are concentrated in and around Jalgaon. But we
have plans to expand our endeavors to other locations, such as,
Chittoor, Baroda, Udumalpeth, Hyderabad, Alwar, Bhavnagar in alpha
order.
There is detailed CSR report for FY 2015 which dwells on dates,
projects, expenses and benefits as well as beneficiaries. Annexure III.
Sr. CSR activities carried out Explanation Amount (Rs.)
1 Rural development Projects Rural development 373,423
Socio Cultural Expenses projects,
(awarnness program on (i) promoting
Sanitaion, preventive
Anti-vices, Women health
Foeticide, care and
Water conservation) sanitation and
making
available safe
drinking water:
a Health, yoga and other Ensuring 217,264
developmental activites environmental
in rural area sustainability,
surrounding the ecological balance,
factory premises conservation of
natural resources
b Social awarness in rural and maintaining 156,159
areas surounding the quality of soil, air
factory premises sanitation, and water
antivices, women foeticide,
water
conservation etc.,
2 Consevation of natural resources, quality of soil, air, water, etc.
Contribution to FALI Ensuring 2,100,000
project - Initiative to environmental
focus on agri sustainability,
technology, modern ecological balance,
agriculture, and agri conservation of
business through natural resources
training, learning, and maintaining
contests,etc. quality of soil,
air and water,
a Material and Stationery protection of
b Launch of the program flora and fauna
c Salary of the staff
implementing
the program
3 Promoting Education
Support for Anubhuti Promoting education 10,806,750
English Medium School
and other educational
assistance provided
under the aegis of B&K Jain
Multipurpose Foundation
a Salary, honorarium and other 3,325,887
expenses of teaching staff
b Maintaince (Building, Water, 740,483
Electricity, Housekeeping etc)
c Educational, book and other 4,078,203
expenses of Anubhuti English
Medium school
d Direct educational help by 2,021,506
BKJMPF to the applicants to
BKJM foundation
e Other expenses, stationary, 640,671
clothes and others
4 Promoting Sports
JISL supports the programs Training to promote 10,700,932
rural sports,
of Jain Sports Academy by nationally recognised
including but not limited sports, paralympic
to payment of salaries of sports and Olympic
the admin staff, Coaches,
Players, Heads, Sports
Material, Tournament
Fees, etc.
a Sports Expenses made by Jain 9,812,572
Sports Acedemy (Salary to
coaches and sportsmen including
the material purchase)
b Adminsitrative Expenses of 8,88,360
Jain Sports Academy :
(Adminstrative and Accounts staff)
Sub-total 23,981,105
b) Sustainability Reporting
The fourth Sustainability Report for the year 2014 and 2015 in under
review as per GRI requirements. This report will cover all the
operations of Jain Irrigation around the globe. This report will also
cover all the information, process and materiality related to Economic,
Environment and Social aspects of the organization in the Year 2013-14
and 2014-15.
All facilities in Jalgaon are certified as per ISO 14064 GHG-
Management Systems and ISO 50001- Energy Management Systems. Now we are
also under the process of audit for ISO -14046 for water Management
Systems and re-audit of GHGMS (ISO 14064) at all Jalgaon facilities.
According the Alliance for Water Stewardship (AWS), Jain Hills, Jain
Valley and new site along with Kantai Dam area and Takarakheda will be
considered as per the watershed basis for AWS. This will become a part
of Sustainability Report 2015, which will be published hereafter.
The new initiative taken by organisation is Water Benefit Credits for
onion farmers. The WBC issued will reduce the cost of extension,
training and farmers outreach for introduction of new technology, input
management and harvest scheduling etc., we have completed the book on
bio-diversity at Jain's premises in Jalgaon, which will be released
very soon.
Hindustan Coca-Cola Beverages Pvt. Ltd. (HCCBPL) and Jain Irrigation
scaled up the joint initiative Project Unnati with investments
amounting to Rs. 50 crores over a period of 10 years. After achieving
the desired results in Phase 1, both partners made the announcement of
scaling the initiative fivefold reaching 25000 farmers in Phase 2. The
Project, in its second phase will identify nearly- 25,000 farmers,
holding an area of 50,000 acres and support them in adopting the Ultra
High Density Plantation technology. The selected farmers will be
provided assistance for using this technology during the project.
During the reporting period Company holds 13,780 carbon credits (CDM)
and 3,620 Voluntary Carbon Credit. By the next six months we will be
eligible from UNFCCC to issue about 33, 000 carbon credits from
different renewable energy project which are registered as CDM
projects. Our Solar and Biogas power project is also registered for
Renewable Energy Certificate mechanism yielding some income, though the
REC issued are piling up. We conduct regular training on various
aspects of sustainability for our associates and stakeholders.
15. Directors retiring and their background
The shareholders in the 27th Annual General Meeting appointed the
following persons as Independent Directors for the term of 5 years
ending with Annual General Meeting to be held in the year 2019.
Sr. Name Designation
1 Shri. Vasant V Warty Director-Independent
2 Mrs. Radhika C Pereira Director-Independent
3 Shri. Devendra R Mehta Director-Independent
4 Shri. Ghanshyam Dass Director-Independent
5 Dr. Arun Kumar Jain Director-Independent
6 Dr. Harishchanda Prasad Singh Director-Independent
All Independent Director's have affirmed that they still adhere
to criteria for independance w.r.t Company for FY 2016
All Independent Directors have given declaration that they meet the
criteria for independence as laid down under Section 149 (6) of the
Companies Act, 2013, and Clause 49 of the Listing Agreement, entered
into with stock exchanges.
Shri Ashok B. Jain and Shri R. Swaminathan retire by rotation as per
Companies Act, 2013, and being eligible offer themselves for
reappointment, at the ensuing Annual General Meeting. The brief
background of retiring directors is as follows:-
Shri Ashok B. Jain joined the management team in 1982 and was in charge
of marketing and extension services in Maharashtra and other States. In
1993 he became Director and was responsible for Corporate
Administration, Corporate Image and Relationships, Events Management,
Personnel/Human Resource Development, Communication, Public Relations,
Art and Publicity. Since he also acts as Commercial Chief of the Food
Processing and Green Energy Divisions
Shri R. Swaminathan is Chemical Engineer responsible for technical
manufacturing operations in our Polytube, Sprinkler, PVC & PC Sheets
and PVC & PE Pipe units. He has 34 years of experience in operation and
maintenance activities of plants handling such things as Solvent
Extraction, Plastics Extrusion and Injection Moulding. He joined the
Jain Group in 1982 and was appointed a full-time Director in 1996.
16. Internal Financial Controls ("IFC")
The Company's objectives are defined broadly by the Vision and Mission
Statement adopted for last few decades and implemented continuously by
the management team. The credo, guiding principle, work culture,
quality perspective all are clearly defined and practically achievable.
With this background of objectives, the Internal Financial Control is
guided by Audit Committee and Board of Directors based on following
broad parameters The Company has retained KPMG LLP to advise on phase
wise implementation of further strengthening of IFC .
A) Policies and processes adopted for orderly & efficient conduct of
business
The Company has formalized various policies at Board level to ensure
ethical, orderly, timely, flexible and efficient conduct and control of
business in all its divisions, namely Micro- sprinkler irrigation, PVC
& PE piping systems, Tissue Culture, Greenhouses, bio fertilizers and
green energy products, besides processing of foods and vegetables.
B) Safeguarding of assets
The Company has evolved efficient, effective mechanism for the
safeguarding of its assets whether tangible or intangible, assets and
property with selfcontrol or third parties, funds or securities and
negotiable instruments, employee associates. Besides providing for
safety, housekeeping and security the assets are adequately insured
against perils/happenings etc.
C) Prevention and detection of fraud and errors
The Company has an internal audit department at each of its
manufacturing location, which conducts comprehensive audit of every
single financial transaction, as well as reconciliation to accomplish
control and to ensure prevention of fraud, and is aided by an
"external" internal audit which reviews not only manufacturing
locations but also depots/ other processes like purchase, statutory
compliance, collection, foreign exchange, taxation, costing,
compliance, accounting etc. The Company's management information and
accounting system also integrates internal control mechanism.
D) Accuracy and completeness of accounting records
The Company has in place fully integrated ERP system, based on SAP
software, and its subsidiary's records also get integrated while
consolidating the same as per requirements of Law for the time being in
force. ERP System encompasses authorization matrix and maker / checker
verification to ensure transparent and timely flow of information, and
recording thus creating appropriate and conductive platform for
effective control and decision making. The accounting system has
provision for Audit trail and check mechanism for use by various
auditors.
E) Timely preparation of reliable financial information
The Company has a robust and efficient mechanism for timely preparation
of reliable financial information, within given timelines and has a
track record of submitting information without any delay to relevant
authorities.
F) Monitoring and Reporting
The Company has put in place a mechanism to monitor and report
exceptions on compliance requirements on an enterprise wide level.
Company is implementing an IT platform to capture non conformity and
reporting to Chief Compliance Officer or Company Secretary, who shall
be mainly responsible for the monitoring control and reporting
function. In case of non-compliance despite warnings thrown up in the
system, a gradual system of remedial action, warning, punishment shall
be laid down depending on gravity and level of non-compliance and
deterrent is in place for non- compliance.
17. Corporate Governance Report
A separate Corporate Governance Report is attached as Annexure IV,
forming part of Director's Report in terms of revised Clause 49 of the
Listing Agreement entered into with Indian Stock Exchanges. A
Certificate from Statutory Auditors, confirming compliance of Corporate
Governance code and Clause 49 of the Listing Agreement is also attached
together with CEO Certificate.
18. Management Discussion And Analysis Report (MDAR)
As per the requirements of the Clause 49 of Listing Agreement, a
separate Management Discussion & Analysis is given elsewhere in the
Annual Report at Annexure V.
19. Particulars of Loans, Guarantees or Investments by the Company
The details of Loans, Guarantees or Investments by the Company during
the year given at Annexure VI.
20. Consolidated Financial Statements
Pursuant to the Listing Agreement entered into with Stock Exchanges,
Consolidated Financial Statements are prepared in accordance with
Accounting Standard 21, form part of the Annual Report. Pursuant to
Section 129(3) of the Act, a statement in Form AOC-1 containing the
salient features of the financial statements of the subsidiary companies
is attached to the Financial Statements. The Company shall make
available the said financial statements and related detailed information
of the subsidiary Company upon request by any member of the Company. The
financial statements will also be kept open for inspection by any Member
at the Registered Office of the Company. In terms of requirement of the
Companies Act, 2013 the financial statements of the Company,
consolidated financial statements along with relevant documents are
available on the website of the Company.
21. Significant, Material orders passed by the Regulators/ Court/
Tribunals
There are no material orders or judgments passed by the Regulators/
Court/ Tribunals which would impact the 'going concern' status of the
Company or its future prospects, subject to contingent Liabilities as
mentioned in the notes forming part of Financial Statements.
22. Director's Responsibility Statement
In accordance with the provisions of Section 134(3) (c) of the
Companies Act, 2013, your Directors state that:
i) In the preparation of the annual accounts, the applicable Accounting
Standards have been followed except, to the extent indicated in notes;
ii) The accounting policies are selected and applied consistently and
are reasonable; prudent judgments, and estimates were made so as to
give a true and fair view of the state of affairs of the Company as at
31st March, 2015, and, of the profit of the Company for the year ended
31st March, 2015;
iii) Proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of
Companies Act, 2013, for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;
iv) The Directors have prepared the annual accounts for the FY ending
31st March, 2015 on a 'going concern basis'.
vi) The Directors have laid down internal financial controls to be
followed by the Company and that such internal financial controls are
adequate and were operating effectively.
23. Extract of Annual Return
Pursuant to Section 92 (3) of the Companies Act, 2013, the details
forming part of the extract of Annual Return in form MGT - 9 is
attached at Annexure VII.
24. Governance Disclosers
Policy for Performance Evaluation
In terms of Section 178 of Companies Act 2013 and Clause 49 of the
Listing Agreement, Board has constituted Nomination & Remuneration
Committee (NRC) with at least three Independent Directors and three
Non-Independent Directors, an Independent Director being Chairman of
the Committee.
Board has evolved Company's policy for appointment and remuneration
based on qualifications, positive attributes, the details of which are
laid out in Appointment & Remuneration Policy at Annexure - II
Board Evaluation
Pursuant to provisions of the Companies Act, 2013 and Clause 49 of the
Listing Agreement, The Board of Directors has carried out evaluation on
its performance and that of its Committees and of all individual
Directors.
The Nomination and Remuneration Committee has evolved the policy for
performance evaluation of Executive Directors, Independent Directors,
Board Sub- Committees and the Board as whole.
A separate meeting of Independent Directors was held to review the
performance of chairperson and Board as a whole.
The criteria for performance evaluation of the Board included, aspects
like Board composition and structure; effectiveness of Board processes,
information and functioning etc. The criteria for performance
evaluation of Committees of the Board included, aspects like
composition of Committees, effectiveness of Committee meetings etc. The
criteria for performance evaluation of the individual Directors
included aspects on contribution to the Board and Committee meetings,
like preparedness on the issues to be discussed, meaningful and
constructive contribution and inputs in meetings etc. In addition the
Chairperson was also evaluated on the key aspects of his role.
25. Familiarisation programme for independent Directors (ID's)
The Company has arranged for visit of Directors after September 2014 to
make the ID's aware of their roles, rights responsibilities in the
Company, and also the industry in which Company operates, business
model of the Company, and also their role in governance matters.
In addition the ID's are nominated for outside professional seminar,
training to give insight to them of changing legal land scope on
corporate front.
26. Vigil Mechanism
The Company has adopted a Whistle Blower Policy to provide a mechanism
to all employees, to report their concern about suspected fraud or
violation of Company's ethics policy, code of conduct. The policy
provide direct access for employees to Chairman of Audit Committee and
it is affirmed that no personnel of the Companies has been denied
access to the Audit Committee. The policy of vigil mechanism is
available on the Company's website and web-link there to is
http://www.nseprimeir.eom/z JISLJALEQS/files/ WHISTLE BLOWER POLICY.pdf
27. Directors Remuneration
The information / disclosures necessary under schedule V, Part II,
provisions of Section II B (IV) of the Companies Act 2013 are attached
at Annexure VIII to this report.
Also the information pursuant to Section 197 of the Companies Act 2013,
read with Rule 5 (1) of the Companies (Appointment and Remuneration of
Managerial Person) Rules, 2014 are given in Annexure IX to this Report.
28. Contracts or arrangements with related parties
The Contract and Arrangement entered into during the year with Related
Parties were on arm's length basis, in compliance with the applicable
provision of the Companies Act, 2013 and Listing Agreement.
There are no "materially significant" Related Party Transactions
entered into by the Company with Promoters, Directors, KMP's which may
have potential conflict with the interest of the Company. All Related
Party Transactions are placed before the Audit Committee, which
Comprises of Mr. Ghanshyam Dass, Mr. Vasant V. Warty, Smt. Radhika
Pereira (being the ID's) of the Company for its approval. The Audit
Committee also reviews on quarterly basis all Related Party
Transactions during the quarter. The Company has adopted Related Party
Policy. The policy approved by the Board is available on Company's
website and web-link there to is http://www.nseprimeir. com/z
JISLJALEQS/files/Policy on Materiality and Dealing with Related Party
Transactions.pdf
The Company has transactions with subsidiaries in ordinary course of
the business for some of the export-import related transactions for
details refer Annexure X.
29. Environment Health and Safety performance
The Company has implemented Quality, Environment, Occupational Health
and Safety Integrated Management System (IMS) with Certifications and
same is maintained with continual improvement at all locations i.e.
Jalgaon, Chittor, Hyderabad, Udumalpet, Alwar and Bhavnagar plants. In
the year 2014-15 the IMS scope expansion was done to include Survey,
Design, installation and servicing activities of project sites, and it
received the IMS certification from TUVNORD for the same.
Rain water harvesting is done from factory open area, as well as from
roof top in buildings, and same is used for recharging of wells through
suitable rain water harvesting structures.
Fire hydrant systems at Plastic Park, Jalgaon and Hyderabad have been
made fully operational, covering entire plastics manufacturing
facilities. Fire hydrant system installation work is in progress at
Udumalpet plant and it is expected to be operational during next
financial year.
Smoke detection & alarm system is installed to cover entire
administration building and HR office building at Plastic Park,
Jalgaon.
Some of the safety measures taken in the manufacturing facilities are
given below:
* Software modification done in all Polo, Sprint, Armor series machines
for auto tripping.
* Mechanical jam bar safety is provided in bigger size Injection
Moulding machines.
* In PE pipe plant safety alarm and safety indicators are installed on
raw material day bins for early warning of rise in temperature in raw
material feeding section.
* In socketing machine, pipe movement is automated to avoid manual
operation in SWR Pipe plant.
* Safety guards are provided to operating switches of multi-station
butt fusion welding machine in Sprinkler and toe guards are provide to
the platforms of raw material conveying system in Drip line.
* Provision of speed breakers at the road crossings near drip line
plant and provision of side guards on tuskers carrying raw
material/coils has helped in safe transportation.
* Pictorial Safety work instructions are displayed in local dialect in
Shop floors for easy understanding of associates.
30. Fixed Deposits
The Company has not accepted, nor renewed any deposits from public,
under the Companies Act 2013 and Companies (Acceptance of Deposits)
Rules, 2014, including amendments to the same. The Company had no
unclaimed / overdue deposits as on 31st March, 2015.
31. Auditors
a) Statutory Audit
The Auditors, M/s. Haribhakti and Co., Chartered Accountants, Mumbai
have furnished a Certificate under Section 139 of the Companies Act,
2013 that their proposed re-appointment, if made, will be in accordance
with the said provision of the Companies Act, 2013. The Audit Committee
and Board have recommended that M/s. Haribhakti and Co., a firm of
Chartered Accountants, Mumbai be reappointed as Statutory Auditors, in
terms of relaxation available in third proviso to under Section 139 (2)
of Companies Act 2013. The Shareholders may reappoint the Statutory
Auditors as per AGM Notice sent separately.
The Auditor's Report does not contain any qualification, reservation,
adverse remark.
b) Cost Audit
Pursuant to Section 128 of the Companies Act, 2013 for the Financial
Year 2015, the Company is not required or mandated to get the cost
records audited by cost auditor and hence the Board has not appointed a
Cost Auditor.
c) Secretarial Audit
Pursuant to Section 204, of Companies Act, 2013 and the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014 the
Company has appointed M/s V. Laxman and Co. firm of Company Secretary
in practice, to conduct Secretarial Audit of the Company for Financial
Year 2015. The report of the Secretarial Audit is attached as Annexure
XI. The Secretarial Audit report does not contain any qualification,
reservation, adverse remarks.
32. Particulars of Employees
As per provisions of Section 134 of the Companies Act, 2013 only six of
the persons in employment of the Company have drawn remuneration in
excess of Rs. 500,000/- per month, during the year under review or part
thereof as per details in the AnnexureXII to this report.
33. Particulars of Energy Conservation, Technology Absorption,
Research and Development, Foreign Exchange Earnings and Outgo.
A] Energy Conservation 2014-15
Plastic Park:
Various measures under taken by division, had yielded annual savings of
more than 825,000 KWh. Some of the significant energy saving measures
taken in the manufacturing facilities are given below:
* In PVC pipe plant, method of cooling of water has been changed from
chilling plant to cooling tower by provision of three new cooling
towers of 350TR each. This has resulted in reduction in energy
consumption by 474,340 KWh.
* In Drip line plant, instead of utilization of chilling plants located
in 2 different wings, single set of chilling plant was used in lean
season by making provision of common water piping, this has helped in
saving of energy consumption by 91,104 KWh. Replacement of motorized
belt driven flattening caterpillar system by self-driven anti-drifting
roller unit in vacuum tank on Flat dripper lines resulted in energy
saving of 70,891 KWh.
* In Drip tape plant usage of hot air blower is optimized and start of
hot air blower aligned to machine production mode which has resulted in
energy saving of 31,212 KWh. Energy consumption was also reduced by
8,262 KWh by changing startup Nederman and synchronizing it with main
extruder..
* In Injection Moulding, 14 new energy efficient Injection Moulding
M/c's are purchased for CPVC fittings with servo motor with latest
technology. Mercury vapor lamps are replaced by LED lamp with energy
saving of 58,363 KWh.
* In Sprinkler pipe cooling tower and its water circulation pump
operation is automated by temp controller which has resulted in saving
of energy consumption by 14,109 KWH.
* VFD's were installed on two air Compressors, one each in PE pipe and
Sprinkler pipes and this has resulted in energy saving of 59,496KWh.
* In casing pipe, on one machine, DC motor and drive was replaced with
AC motor and drive which has resulted in energy saving of 18,232 KWh in
its four months of operation.
Energy audits were carried out at other plants viz. Hyderabad,
Udumalpet, Alwar and Bhavnagar during Sept 2014 to Jan 2015. Energy
saving opportunities are identified through these energy audits and
actions are under progress.
Jalgaon unit has been certified for the ISO 50001 and ISO 14064 energy
and GHG management systems by TUVNORD and same is planned to be
extended to other plants in next year.
Agri Park & Tissue Culture
Measures taken for reducing energy consumption:
* Rain water harvesting network has been created in newly developed R&D
farm at Jalgaon. It can store up to 1.80 bn. lakh liters water in above
ground storage structures besides recharging of wells and underground
aquifers. This has led to a great impact on conservation of energy
* In Agri Park, a total of 58.5 HP solar based water pumps were
installed to replace grid electricity for irrigation of research and
development farm. This has been a major breakthrough as it can replace
conventional electricity to a substantial extent.
* LED are installed at new tissue culture laboratory growth room based
on the results of the research carried out by Research and Development
team of Tissue culture. The research claims minimum 60% energy saving
against the conventional fluorescent tube lights.
* HEPA (High-efficiency particulate arrestance) based exhaust systems
has been developed and installed at Media Store Room, class 1.0 lac
clean room of the laboratory to take out steam generated by steam
sterilizers. This could reduce operational work load of air
conditioners and save energy required for reducing the temperature.
B) Technology Absorption Agri Park & Tissue Culture
* New High Performance Liquid Chromatography equipment was procured for
biochemical analysis. This -pment has maximum resolution and this
technique is used in routine R&D analysis to separate the components in
a mixture, its identification as well as quantification. It relies on
pumps to pass a pressurized liquid solvent containing the sample
mixture through a column filled with a solid adsorbent material. Each
component in the sample interacts slightly differently with the
adsorbent material, causing different flow rates for the different
components and leading to the separation of the components as they flow
out the column.
* One of our Ph.D. students was deputed to Umea Plant Science Centre,
Umea, Sweden to learn advanced techniques in plant molecular biology
during August-October 2014. The results of visit are encouraging and
pursuit us to explore such opportunities.
C) Research and Development
i] Photovoltaic (PV) Powered Electro dialysis (ED) Desalination System
Desalination Using Photovoltaic EDR Systems of brackish groundwater in
rural India up to 5000 ppm salinity is converted into drinking quality
water in single pass, using pre-filtration, Photovoltaic-powered
electro dialysis reversal (EDR) system that desalinates water using
electricity to pull charged particles out of the water and further
disinfects using ultraviolet rays. The system was designed for low
energy consumption, limiting costs especially in off-grid areas. Water
recovery is above 90%. It removes hardness as well as heavy metals &
chemicals, pesticides, fertilizers as well as micro-organisms. No
chemicals need to be added to the system. Membranes can handle wide pH
range (0.5-10.5). ED polarity reversal process prevents scaling and
allows for high recoveries with chemical addition. The unique solution
researched to address the problem is electro dialysis reversal water
desalination plant. Water with salinity levels above the taste
threshold (>500mg/L) underlies 60% of the land in India. Irrigating
with high salinity water can decrease crop yield, estimated to cause
reduction in productivity of 20-30 Million hectares of irrigated land
each year.
Compared to RO process, this process is most energy efficient & hence
cost of water purification is low & affordable; ED membrane has long
life (about 10 years). Technology is completely automated & easy to
maintain. This technology can be used for community based safe &
economical production of drinking water as per WHO Standard from saline
or brackish water. This would also be useful for agriculture. This
technology also has vast potential to bring vast barren lands under
agriculture using brackish water, reject concentrate water (5-10%) is
dried in a solar pond without creating any environmental hazard.
Concentrated salts can be purified & provided to Textile Industries
where higher saline water needed to process & reused.
ii] Advance Irrigation controller (RTU)
Advance irrigation controller (RTU) is a new generation irrigation
controller system. RTU is powered with short range wireless
communication capability. This makes installation quicker & simpler by
eliminating tedious wiring connections. Due to elimination of wires on
field system becomes scalable. This system is capable of operating -- 8
DC latching solenoids, 4 Industrial standard analog sensor & 4 digital
interface for measurement of sensors. Inbuilt Solar panel & Long life
lithium -ion battery makes "JR-RTU" self-powered Irrigation controller
for open filed & remote sites.
iii] 5 HP AC solar pump controller
High efficiency 5 HP (3.7 KW) AC solar pump controller is developed with
sensor less dry run protection, panel reverse polarity protection, short
Circuit and overload protection. MPPT is used to utilize maximum solar
power. Additionally, when motor is jammed or open, controller stops and
automatically attempt to start by rechecks.
Agri Park & Tissue Culture
* Experiments on short duration with high productivity in cotton were
concluded after three years and new agronomic practice was standardized
for this crop.
* Seed production of Leek under Indian conditions was standardized.
Leek is a very important vegetable crop next to onion.
* Commercial tissue culture protocol for micropropagation of Guava has
been developed and field evaluation of plants has been encouraging. One
lac plants are being propagated and will be distributed to the farmers
for carrying out multilocation trial before taking this crop for
commercial scale production.
Food Park
In Food Processing, we undertake R&D and innovation in the following 3
categories of activities:
* New product development
* Improving existing processes & quality of existing products
* By-products can be made out of waste generated Under new product
development, the Company has identified 5 focus fruits and vegetables.
Following new products have been developed and introduced to customers
in 2014 - 15
* Dehydrated Green Chilies : Trials have been conducted for the
dehydration of the Green Chilies. Pilot trail has been successful and
the product is ready for the commercial production in the coming year.
* IQF Guava Dices : Trials have been conducted for manufacturing IQF
Guava Dices. Trials have been successful and this product is ready for
commercial production.
* Frozen Jamun Puree : Trials have been conducted for pulp extraction
and product of Frozen Jamun Puree. Trials have been successful and this
product is ready for commercial production.
* Strawberry Puree (With and Without Seed) : Trials have been conducted
for manufacturing Strawberry Puree. Two types of products i.e. With
Seed and Without Seed have been successful and product is ready for
commercial production in future.
* Green Mango Puree : Trails has been conducted on pilot scale to make
Pulp of Raw Mangoes. Trials have been successful and product is ready
for commercial production.
For Improving the existing processes and quality of existing products,
following have been carried out
* Trails have been taken to use Ozone as replacement of Chlorine as
sanitizer for Onion products. The trails are still in progress.
* To improve quality of the water used for transfer of the onions,
trails are being done to improve the filtration system for the water.
For this, special online filters have been bought. The trails are in
progress for this.
* Nonchemical treatment of water : We use soft water in fruit
processing for certain processes. For this, we need to give chemical
treatment to water to make it soft. Trails have been done for the use
of nonchemical treatment of water, with the use of special equipment.
Trails have been successful and this is being implemented in all the
plants now.
Energy Park
* 2.2 Kw BLDC submersible motor for 3000Wp solar PV:
A new electrical design adopted for best efficiency of motor when run
with 3000Wp solar PV. This motor is optimally designed to cater 3HP
solar pumping system demand in the market.
* Mechanical improvements in the 3.5Kw BLDC submersible motor:
After studying the feedback of the customers many improvements are
carried out in the mechanical components. In order to achieve highest
reliability of the motor
* Design and Development of Pipe type canned BLDC submersible motor :
After studding the many benchmarked motors in the market, we designed
and developed a 3.5Kw BLDC motor with simpler mechanical components and
assembly in order to achieve best efficiency and reliability. A
prototype is under assembly stage.
* Pump end development
Tested many benchmarked submersible pump ends for solar pumping
application. Study is under progress to design highest efficiency
submersible bore well pumps for Solar pumping application.
R & D Solar Photovoltaic:
* Use of Anti Reflection (AR) coating on glass to reduce Cell-to-Module
(CTM) loss & increase efficiency of PV module.
* Aluminium frame gluing machine for manual line developed in-house to
eliminate manual filling of aluminium frames and improve the quality of
gluing.
* Modification done in frame denting machine for denting the PV modules
with glass down position to eliminate flipping of PV module.
* Modification done in Terminal box gluing machine to use silicone
sealant's 20 litres pail & eliminate use of silicone sealant cartridge
which are very costly.
* Successfully tested PV modules of 255 Wp & 305 Wp capacity as per IEC
60904 at Fraunhofer Institute, Germany which is one of the topmost PV
module testing institute in the world.
R & D Expenditure (Rs. in Million)
Sr. Particulars 2014-15 2013-14
a. Capital Expenditure 16.38 13.47
b. Revenue Expenditure 197.14 153.49
Total 213.52 166.96
c. % of Revenue 0.50% 0.40%
Foreign Exchange Earnings and Outgo
(Rs. in Million)
C.I.F. Value of Imports,
Sr Expenditure and Earnings 2014-15 2013-14
No of Foreign Currency
a. C.I.F. Value of Imports
Raw Materials, 4,434.58 5,277.89
Components and Stores
and Spares
Total 4,434.58 5,277.89
b. Expenditure in Foreign Currency (on Cash basis)
i) Interest and Finance 629.441 584.68
Charges
ii) Discount/ Commission 128.59 114.12
on Export Sales
iii) Export Selling/ Market 65.26 12.39
Development
iv) Travelling Expenses 19.23 10.43
Law & Legal/
v) Professional 33.47 38.91
Consultancy Expenses
vi) Testing Quality & other 45.03 60.03
Charges
Total 921.02 820.56
c. Earnings in Foreign Currency
FOB Value of Exports 8,511.35 9,229.93
35. Acknowledgement
The Directors take this opportunity to place on record their
appreciation of whole hearted support received from all stakeholders,
customers and the various departments of Central and State Governments,
Financial Institutions, Bankers, the Dealers and Suppliers of the
Company. The Directors wish to place on record their sense of
appreciation for the devoted services of all the associates of the
Company.
For Jain Irrigation Systems Ltd.
Sd/- Sd/-
Anil B Jain Ajit B Jain
Managing Director Jt.Managing Director
Place : Mumbai Date : Sep 02, 2015
Mar 31, 2014
To the Members,
The Directors present their report on the financial performance,
business and operations of the Company for the year ended 31st March,
2014.
1. Financial Highlights Rs. in Million (except EPS)
Particulars 2013-14 2012-13
Domestic Sales 30,692 27,571
Export Sales & Services 9,816 6,490
Other Operating Income 823 1,048
Sales and Operating Income 41,331 35,109
Operating profit 5,020 5,793
Interest and Finance Charges 3,908 4,111
Depreciation and Amortisation 1,413 1,195
profit before taxation and exceptional
items (301) 487
Provision for Tax
Deferred Tax Asset/(Liability) 414 100
Current Tax Provision 74 86
profit for the year before Prior Period 39 301
Expenses
profit for the year 39 301
profit b/f from the previous year 8,346 8,341
Balance available for Appropriation 8,385 8,642
Out of which the Directors have
appropriated as under;
Proposed Dividend 231 227
Dividend Distribution Tax 39 39
Transfer to General Reserve 27 30
Balance carried forward 8,088 8,346
Earnings per Share (Rs.)
Basic 0.09 0.70
Diluted 0.09 0.70
2. Operations - Standalone
The overall operating income and revenue was at Rs.41,331 Mn for year
ended March 31, 2014 a growth of 17.7% over last year''s level of Rs.
35,109 Mn. The Hi-Tech Agri Irrigation Input products reported a 14.5%
growth at Rs. 26,612.5 Mn in FY 2014 against Rs. 22,798.2 Mn in FY 2013.
The Industrial products division grew at a better 34.5% reporting
revenue at Rs. 13,448.9 Mn in FY 2014 against Rs. 10,002.1 Mn in FY 2013.
The Green Energy products de-grew 23.3% due to conscious management
decision to concentrate on cash fow rather than revenue growth and
reported revenue of the Rs. 1,769.7 Mn as against Rs. 2,309.2 Mn for FY
2013.
Revenue for the year under review grew by 17.7% over year ago,
supported by PE Pipes 61.8%, Fruit Processing 24.1% & MIS 20%. The Net
profit at Rs. 39 Mn against Rs. 301 Mn last year was impacted by the foreign
exchange losses resulting from depreciating rupee and MTM loss of Rs.
1,975.5 Mn against Rs. 934.2 Mn in previous year
3. Dividend
Sr.
No. Particulars of Equity Shares Amount (Rs.)
1 25% (Rs. 0.50 per share) on 221,559,989
443,119,978 Ordinary Equity
Shares of Rs. 2 each
2 25% (Rs. 0.50 per share) on 9,647,152
19,294,304 DVR Equity Shares of
Rs. 2 each
Sub Total 231,207,141
3 Dividend Distribution Tax @ 39,293,654
16.995%
Total (1 2 3) 270,500,795
The Directors propose to the Shareholders a Dividend of Rs. 0.50 each on
Ordinary & DVR Equity Shares involving an outlay of Rs. 231.21 million to
all eligible shareholders, and Rs. 39.29 million as Dividend Distribution
Tax for the year ended 31st March 2014.
4. Fund Raising
a) Sale of Wind Power Undertaking:
During the year under review the Company hived off Wind Power
Undertaking which was operating at Theni, Tamil Nadu. The unit included
8 Wind turbines and 28.5 acres of Land and all related assets and
liabilities. The average PLF for 3 year period of Wind Turbines was
just about 26%. The shareholder approval was obtained by way of Postal
Ballot and actual transfer was effected in Q4 FY 2014. The total value
of Wind Power Undertaking was Rs. 645 Mn.
b) Equity Warrants Conversion:
As Members are already aware, the Company after obtaining all the
necessary approvals had issued 75 lac Equity Warrants at a price of Rs.
86.30 each aggregating Rs. 647.25 mn out of which as per SEBI (Issue of
Capital & Disclosure Requirements) Regulations, 2009, the 25% deposit
was paid upfront at the time of issue and on payment of balance 75% the
warrants were converted into Equity shares of Rs. 2 each on 20-03-2014.
The proceeds are utilised for strengthening the long term working
capital base of the Company, as proposed while raising the funds.
5. Capacity Expansion and Capital Expenditure
The Company has continued its ongoing growth/ maintenance capex and the
following table gives the capex incurred for capacity expansion
implemented during the year and the resultant capacity addition in FY
2014:
Sr. Addition in
Capacity for Capex FY 2014
Segment name Unit
No. FY 2014 (Rs. Mn)
1 MIS/SIS MT 2,410 436
2 Piping Systems MT 32,750 343
3 Dehydrated Vegetable/
Fruit Puree etc MT 3,800 429
4 Tissue Culture Mn. Nos 10 119
5 Others & Corporate - - 516
Total 1,843
Growth capex has been detailed at 1-4 above, and rest is either
maintenance or corporate capex.
7. Other major developments during FY 2014
a) ESOP Variations:
In 2005-08 period the Company had granted 4 lots of 25 lacs Equity
Shares to its associates on various dates between 27th January, 2007
and 27th June, 2008 at different exercise price. However, in 2013 the
Share price became unattractive the associates were not interested in
option exercise despite options having been vested fully in June 2011
i.e. 2 years or more before. Thus, Company''s Board, and Shareholders
approved revision in Exercise Price to Rs. 60.45 or thereabouts in last
AGM on 27-09- 2013. Most of associates have now exercised the option
and are willing to deposit Exercise Price in Company''s Bank Account
soon hereafter.
b) FITCH Rating:
The India Ratings and Research, the rating arm of FITCH Ratings group
upgraded the Company''s short term and long term rating to "investment
grade" during the year (November 2013) with a ''stable outlook''. The
ratings upgrade did benefit the Company in bringing its overall cost of
debt down in 2nd half of FY 2014. However, the full impact of this and
possible further upgrading of rating may help Company bring its cost of
debt down further in next fiscal year.
c) About NBFC i.e. Sustainable Agro-Commercial Finance Limited FY 2014:
The following table gives details of funds raised by NBFC during the FY
2014:
Nature of funds From Amount Remarks
(Rs. Mn)
(a) Equity shares Jain Irrigation Systems 55.62 Mn
556.25
(Rights Issue) Limited Shares
(b) Equity shares International Finance 6.90 Mn
69
(Preferential
Issue) Corporation (IFC) Shares
(c) Equity Shares Jain Irrigation Systems 5.09 Mn
50.99
(Preferential
Issue) Limited & IFC Shares
(d) Equity
warrants 21.89 Mn
Promoter Family 218.94
(Preferential
Issue) Share
Warrants
Total 895.18
Financial Year 2014 was frst fully operational year for the NBFC and at
the end of FY 2014 the sanctions had crossed Rs. 1,021.5 Mn, while
disbursements have touched Rs. 1,014.5 Mn. Even repayment of loans has
started and was placed at Rs. 147.8 Mn. The outstanding loans were
reported at Rs. 948.7 Mn and during the frst year there were no Non
Performing Assets (NPAs) at the end of FY 2014. SAFL has 25 offices
across Maharashtra while it has strength of 137 people. The SAFL has
tied up with 17 Sugar factories for sanctioning loan aggregating to Rs.
570 Mn under third party tie-up, wherein total disbursements were Rs.
369.9 Mn.
8. Other major developments post March 2014
The Company has established a New Onion Dehydration Line (3,800 MTpa).
This was commissioned by the Company with a capacity of processing 17.5
metric tons per day. This is the longest dryer in the Country i.e. 70
meters. The dehydration line was fabricated in-house.
Since last 16 years, Company has been in Onion dehydration process and
has formed a chain of 4,500 farmers through contract farming. The
Company has dehydration lines at Jalgaon and Baroda. Baroda lines have
a capacity of 18.0 metric ton per day output and Jalgaon lines have
capacity of processing 32.5 metric ton per day output. Capacity of
Jalgaon lines have increased by 12.5 metric ton. This new dehydration
line helps to process onions in less time.
9. Directors retiring and their background
Shri Ajit B. Jain and Shri Atul B. Jain are retiring by rotation as per
Companies Act, 2013 and being eligible offer themselves for
re-appointment at the ensuing AGM. Their brief background is as under:-
Shri Ajit B. Jain (DIN 00053299) is BE (Mech). He is Joint Managing
Director of the Company since 1994 and is responsible for the pipe
division as well as marketing of all plastic products, including drip
irrigation, guidance for extension service and development of new
applications and products. He joined in 1984 and started his training
in production and maintenance in the pipe division. During the period
from 1985-1990, he was in charge of establishing our new pipe
production plant at Sendhwa (in the state of Madhya Pradesh in India).
In 1991 he was appointed Director with the overall responsibility of
the pipe manufacturing plant at Jalgaon, including production,
maintenance and marketing of new applications & products and adaptation
of drip technology for Indian conditions.
Shri Atul B. Jain (DIN 00053407) is a Commerce Graduate. He joined the
management team in 1992. He was posted in London office and developed
the Food Processing distribution business in Europe and helped the
Company to maintain the plastic exports to Europe. He was appointed CMO
of the Company w.e.f. 20th August, 2002. Besides overall marketing
management responsibility he has also handled all India marketing
function of Drip Irrigation and PVC pipe products, PE and other
specialty pipes and fittings all over the world. He has been involved
with development of new applications & products in overseas markets for
food and plastic sheet divisions. He also is at present the Joint
Managing Director of the Company.
10. The operations of subsidiaries
The Mauritius based direct subsidiary of the Company has a revenue of $
496,899 and made a net loss of $ 24,497. Summarised Balance Sheet and
the Income statement of the said subsidiary is available elsewhere in
the Annual Report. The subsidiary has redeemed Preference Shares of
holding Company amounting to $ 5,175,000 during the year under review.
The Netherlands based direct subsidiary of the Company has earned an
income of $ 1,675,583 and made a net profit of $10,349. Summarised
Balance Sheet and the Income statement of the subsidiary is available
elsewhere in the Annual Report. The subsidiary has received $ 75,00,000
as Loan from the Holding Company during the year under review.
Other Subsidiaries
Information on operations of other operating and financial subsidiaries,
has been covered under management discussion and analysis (MDA) in this
Annual Report.
11. Employee Stock Option Plan (ESOP)
The implementation of Employees Stock Options and Shares Plan, 2005
(ESOP-2005) has continued during the year under review. Till date four
lots are issued to eligible associates including whole time directors,
and key management personnel. No employee has been issued options
entitling such person to subscribe to more than 1% of Ordinary Equity
Share capital of the Company.
The Shareholders and the Board of Directors have approved a new
ESOP-2011 with 53,56,000 options through an Employee Trust. The
Trustee is independent professional and shall administer the Scheme
under the guidance of Compensation Committee. The scheme of 2011 is
fully compliant with SEBI (ESOS/ESPS) Guidelines, 1999 as amended up to
date.
12. Director''s Responsibility Statement
In accordance with the provisions of Section 217(2AA) of the Companies
Act, 1956, your Directors state that:
i) In the preparation of the annual accounts, the applicable Accounting
Standards have been followed except, to the extent indicated in notes;
ii) The accounting policies are selected and applied consistently and
are reasonable; prudent judgments and estimates were made so as to give
a true and fair view of the state of affairs of the Company as at 31st
March, 2014, and, of the profit of the Company for the year ended 31st
March, 2014;
iii) Proper and suffcient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of
Companies Act, 1956, for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;
iv) The Directors have prepared the annual accounts for the FY ending
31st March, 2014 on a ''going concern basis''.
13. Material Developments in Human Resource
"You are the owner of your work", the Company''s policy has established
a feeling of responsiveness amongst the associates. The Company in turn
takes extra efforts to see that associates not only meet their needs
and aspirations but also provides extra support to the associates and
their families when need arises. This creates a special bond between
the associates and the Company management thus illuminating a feeling
of ''Owner'' in the associates.
Associate Engagement
Various HR initiatives have been adopted by the Company to bring the
feeling of "Organisation as a large family under one roof" not only to
the associates but their family members in a systematic manner. Many
pilgrimage tours were undertaken for the associates and their parents
and grandparents. This year one pilgrimage tour of 9 days covered 38
parents and grandparents along with 7 associates. Issue of infertility
is increasing day by day and due to lack of proper guidance/treatment,
many people give up their hopes. Company has identified such associates
and with proper counseling and treatment, till date, 11 families are
enjoying the success of the program with 5 male children and 6 female
children and 40 cases are in process. Like every year, 176 children of
associates between standard 7th to 10th have been benefited through
"Vidyarthi Utkarsh Abhiyan". Educational scholarship for children of
associates continued this year too. Deserving children of associates
were awarded with the scholarship on need and merit basis. 527
children benefited by scholarships amounting to Rs. 8.556 Mn. Special
focus was given for the education of the girl child. Company also tried
to cover the children of associates in low income group even though
they were not academically meritorious, to encourage them to take up
higher studies. Visits of family members of the associates have been
conducted at all Company locations in Jalgaon. It gives them the
information about the importance of job of their family members and
also about the unique work culture of the organization i.e. "Work is
Life". Total 145 visits have been organized during whole year and
covered 5,437 family members of associates.
Social Involvement:
Blood donation camps were organized twice at 6 months intervals wherein
1,633 units of blood were donated by associates of the Company to local
blood banks.
Training:
The Company is helping to meet the academic requirements of students
opting for "Agricultural Engineering" by providing them 16 week
training which is mandatory at Agri Universities. The students were
given one month class room training and three months feld training in
which students get exposure in survey, design, installation,
maintenance of Micro Irrigation Systems and feld operations. The
training gives them the real experience and trainees who proved
themselves during training, were absorbed by the Company in employment.
Training is a continuous process for increasing performance / skills of
associates and it continues at all our locations all the time.
The location and program-wise training details are as under:
Recruitment and Manpower Strength
Recruitment is an ongoing process throughout the year in search of
right people at right places which also includes the On-Campus
selection for Engineering Graduates and Post Graduates from Agriculture
feld all over the country. Sometimes, walk in interviews also help to
get good people on urgent basis. The recruitment was done on the basis
of merit, potential ability, compatibility with the organizational
culture, fitness with son-of-the-soil empathy. The strength of the
Company reached 8,341 on 31st March 2014, after gross addition of 1,171
during FY 2013-14.
4. Corporate Social Responsibility & Sustainability Report 1) Corporate
Social Responsibility
a] CSR activities broad view
The Company has adopted six villages namely Wakod, Shirsoli PB,
Shirsoli PN, Takarkheda, Mohadi and Kadauli in the Jalgaon district for
improving the educational, health and sanitation conditions. Company
regularly conducts medical camps, seminars about alternative medical
disciplines and social awareness. The literary activities among the
masses and awards to the poets and writers in this feld are conducted
and taken care by our charity "Bahinabai Memorial Trust ". Our Jain
Sports Academy supports more than 450 sportsmen for 18 sports with 40
coaches.
b] Gandhi Research Foundation
Gandhi Research Foundation activities are going at full swing amidst
ever increasing number of visitors. The graph of students taking exams
on ''Gandhi Vichar Sanskar Pariksha'' is also showing upward trend with
over 1,18,000 students appearing in 2013- 14. We have seen many
national and international personalities get associated with GRF this
year. Proff. Douglas Allen, Prof of Philosophy, University of Maine,
New York, Prof. Michael Nagler, Proff of Comparative Literature,
University of California, Berkley, Prof. Michael Lunine, San Francisco
State University, Fernando Ferrarra Reviro, Monterrey, Mexico. Other
notable personalities those visited and delivered lectures were Dr. Mel
Duncan and Dr. Raghunath Mashelkar. Gandhi Research Foundation also
received GRIHA 5 star rating. Gandhi Teerth also received the "Artist
in Concrete Award" in Best Museum Category at Asia Festival in Pune.
New Program on ''Kantai Gram Sudhar Yojana'' was launched by GRF for
women empowerment and self-sustaining of villages.
c] Direct expenditure on various CSR activities in total spending of Rs.
35.59 Mn for FY 2013-14
d] Anubhuti  2
Anubhuti-2 is school for underprivileged families in and around the
Jalgaon city. This school has frst, second, third and fourth standards
and will add on one standard every year up to standard tenth. The
selection criteria benefits student from really low income families. The
student stay in the school from 8.30 am to 4.00 pm. The breakfast,
lunch and snacks are also provided. Their activities vary from sports,
dance, music, cultural aspects, and presentation skills. The language
lab and special dedicated staff for each activity helps to improve the
performance of the student. Overall personality development of the
student is focus of the school.
e] Kantai Bandhara
The ''Kantai Bandhara'' (weir) was inaugurated by the Deputy CM of
Maharashtra Mr. Ajit Pawar and Minister of Irrigation Mr. Sunil
Tatkare. The Rs. 8 crore project (capacity 1,792 million litres) was
funded by the Company. As per the Maharashtra Government directives,
the Company is entitled to 50% reservation of the water in storage
every year, the rest being allocated for society by the concerned
Government of Maharashtra Department. This will provide Company with
assured water supply for use in food processing (fruit and onion
dehydration), especially during dry summer, droughts and low rainfall
months. The region is marked by high temperature, moderate rainfall
(700mm annually) and frequent drought. This affects the availability of
water for agriculture, human and animal consumption. This storage
structure is not only suffcient for Company needs but also for society.
It will help reduce off- season water availability and sudden foods in
downstream areas. The Girna River catchment covers around 9,000 square
kilometers with the water extending 5.6 kilometres from the Bandhara,
making it possible for the backwater to support pisciculture. The
storage structure will benefit eight villages with a population of
16,000.
2) Sustainability Reporting
The third Sustainability Report is available on our website. This
report covers all the operations of Jain Irrigation around the globe.
This report also covers all the information, process and materiality
related to Economic, Environment and Social aspects of the organization
in the Year 2011-12 and 2012-13. The fourth sustainability report will
now be published in the year 2015.
All facilities in Jalgoan are certified as per ISO 14064 GHG- Management
Systems and ISO 50001- Energy Management Systems. The Unnati project
was extended with target up to 50,000 ha. The ongoing activities
related to sustainable agriculture includes project by Unilever -
Rajapuri Mango Development program for selected farmers. During the
financial year the sustainability related aspects for which Company was
issued 13,780 carbon credits from Wind Power projects (now sold) along
with 3,620 Voluntary Carbon Credit of Solar power projects.
Sustainability goal includes, bringing more and more farmers under Jain
GAP.
15. Environment Health and Safety performance
- The Company is maintaining Integrated Management System (IMS) with
integration of ISO 9001, ISO 14001 & OHSAS 18001 system standards. IMS
certifications are earlier completed done at Jalgaon, Hyderabad &
Udumalpet plants and systems are maintained with continual improvement.
The IMS was also implemented during the year 2013-14 at Alwar and
Bhavnagar plants and they have received the certification by TUVNORD for
all the three standards. The work on I MS certification for Survey,
Design, Installation and Servicing activity is under progress at other
locations.
- Rain water harvesting is done from factory open area as well as from
roof top in buildings and same is used for recharging of wells through
suitable rain water harvesting structures.
- Fire hydrant system at Plastic Park, Jalgaon has been made fully
operational covering entire manufacturing facility. Internal fre
hydrant system is planned for PE Pipe building. Fire hydrant system
installation work is in progress at Hyderabad and Udumalpet plants and
it is expected to be operational during next financial year.
- Smoke detection & alarm system is under installation in Server room,
purchase, MIS and complete frst foor of administration building.
- Some of the safety measures initiated in the manufacturing
facilities are given below:
- Limit switches are installed at entrances of all underground grinder
sections.
- Timer based automation of fixture table is done at Injection Moulding.
- Gas Monitor for CO2, CO, H2S, O2 and LEL is purchased and monitoring
of these gases has started.
- LOTO system related tools are purchased and implementation has
started.
- Green cover is increased at various locations by plantation of
variety of plants.
16. Internal Controls and Management Information Systems
ERP
Post implementation of SAP across India locations, now some more
modules are taken up for implementation which would further improve the
effcacy and MIS reports from the system.
Internal Controls
SAP implementation allowed a number of strategies to implement internal
control in the business application through process mapping,
segregation of duties, authorisations. Independent of the SAP
functionality and control check, your Company is proactively
identifying the areas for further improvement which shall remain an on
going process.
Future
The Company has plan to integrate its IT infrastructure by rolling out
SAP at foreign subsidiaries to further streamline Manufacturing, Supply
Chain. Local and global reporting, analysis in a common enterprise wide
format. It will provide better collaboration with our worldwide units,
transparency and effciency for global operations.
Internal Audit
The Company has continued to avail services of Ernst & Young LLP to
conduct internal audit in SAP environment and add value by
strengthening internal controls and improving effciency of operations
at same time.
17. Fixed Deposits
The Company, during the year under review, has not accepted nor renewed
any deposits from public, under the Companies (Acceptance of Deposits)
Rules, 1975. The Company had no unclaimed / overdue deposits as on
31st March, 2014.
18. Auditors
The Auditors, M/s. Haribhakti and Co., Chartered Accountants, Mumbai
have furnished a Certifcate under Section 139 of the Companies Act,
2013 that their proposed re-appointment, if made, will be in accordance
with the said provision of the Companies Act, 2013. The Audit Committee
has recommended that M/s. Haribhakti and Co., a firm of Chartered
Accountants, Mumbai be reappointed as Statutory Auditors. The
Shareholders may reappoint the Statutory Auditors as per AGM Notice
already sent separately.
19. Particulars of Employees
As per provisions of Section 217 (2A) of the Companies Act, 1956 only
six of the persons in employment of the Company have drawn remuneration
in excess of Rs. 500,000/- per month, during the year under review or
part thereof as per details in the Annexure to this report.
20. Particulars of Energy Conservation, Technology Absorption, Research
and Development, Foreign Exchange Earnings and Outgo.
A] Energy Conservation
Plastic Park :Â
In Injection Moulding plant, performance of various old pumps were
improved by replacing them with higher effciency pumps and thereby
reducing energy consumption. Insulating pads were installed on barrels
of injection Moulding machines and this has resulted in reduction in
loss of energy by 10 to 20%. Variable Frequency drives were provided on
Injection Moulding Machine to reduce the average energy consumption by
20%. Retroftting of old Injection Moulding with servo motors resulted
in 40% reduction in energy consumption and increase in production due
to lower cycle time. In MIS pipe Variable Frequency drive were provided
on Turbo of Mixer and Screw Compressor to reduce energy consumption by
20%. The Pipe Cooling Tower & their water circulation pump, operation
was automated by making them temperature dependent to reduce the energy
consumption by 20%. In Drip line plant, energy consumption was reduced
by 20 % by replacement of DC motor & drive by AC motor & Drive.
Installed lower watt LED instead of existing higher watt CFL in garden
dome light to reduce energy consumption. Common vacuum pump was
installed on PVC pipe extrusion lines for barrel vacuum to reduce
energy consumption. Energy consumption was reduced by installing short
wave heater by replacing old U type heater on socket machines. In
Polytube performance of each pump has improved by replacing higher
effciency pump to reduce energy consumption. In PVC sheet energy
consumption in grinding section was reduced by using high wear
resistant blade material. In PVC sheet 100% reduction in energy
consumption during sheet cutting of thickness 6 mm to 25 mm by
replacing Saw Motor to Knife Blade. Foggers and green net is provided
to chilling plants to avoid the effect of atmospheric temperature on
the chilling plant in summer season. This has helped in saving the
electrical energy and maintaining required temperature of process
water.
Being an environmentally responsible organization and in continuation
of our efforts towards well being of environment and society we have
implemented energy management system (EMS) as per ISO 50001 and started
accounting of our greenhouse gas emissions (i.e. carbon footprint) from
the year 2012 Â 13 onwards as per the requirements specified in ISO
14064 : 2006 Part  I. Plastic park has successfully undergone Energy
Management Systems and GHG verifcation audit by TUV NORD and was
awarded ISO 14064 Â 3 & ISO 50001 certifications.
Food Park :Â
(a) Fruit
- modification in sterilizer - Variable frequency drive installed to
control cooling tower pumps to save electricity. During sterilization
motor electricity consumption was 11.76 KW/Hr which reduced to 2 KW/Hr
due to this modification. Net saving in Rs. 1.88 Mn. per annum
- Plant lighting system replaced from CFL to LED type. Net saving in Rs.
0.20 Mn. per annum
- Installed new plate freezer for small pack frozen product. Net saving
in electricity Rs. 0.70 Mn. per season.
- Sterilizer piston pump recycling system of seal water installed.
Saving in water 96,000 ltrs per day has been realised.
(b) Onion
- Replacement of Conventional lighting with LED lights. Saving of
electricity 62,665 kwh/ annum. Total amount saved per year INR 0.50 Mn.
Energy Park :Â
Solar pumping system : Under energy saving and energy management
program Solar pumping system of 244 HP (27 nos) are installed in Tissue
Culture park to supply water for Poly house, Green house and
Agriculture. For solar pumping system 277.4 Kwp solar modules are used
to generate power and run 27 pumps to supply water for Polyhouse (total
137 HP), Green house (total 54 HP) and Agriculture (total 51 HP). In
total solar pumps deliver 53.76 Lakh liters water per day and save
electrical energy 6 Lakh KWH/annum.
Agro photovoltaic System: New experiments are initiated at Tissue
Culture Park to maximize agriculture land utilization for production of
electrical power with solar energy and agriculture food crop combine
together on same land. Solar modules are installed at suitable height
on pole. The solar modules rotate on their axis and track the sun to
generate maximum power. The light transmission at crop level is
maintained to grow them as well. The power generated by solar modules
is used to run the pump for irrigation at the Tissue Culture Park.
Agri Park & Tissue Culture :Â
Measures taken for reducing energy consumption:
- A total of 100kv solar based energy production established at Tissue
Culture Park to operate automated tray filling and seeding line and
green house operations.
- Rain Water harvesting network had been created to harvest rain water
from Poly Houses used for production of tissue culture banana and
pomegranate plants. This enables us harvesting of at least 151,500m3
of water per year.
- Recycling of used and irrigation runoff water in Tissue Culture plant
hardening. Irrigation runoff collection has been implemented through
subsurface drainage to a water re-cycling pond. Used process water is
also collected to a pond. All recycled water is reused after
appropriate treatment.
- It is a general practice for most of the biotech R&D labs to run a
Polymerase Chain Reaction (PCR) setup in the late evening and allow it
to run all through the night and keep the samples at incubation at 4°C
in the thermo-block itself. This consumes lots of energy/electricity.
The laboratory has made it a policy not to run any PCR reactions
overnight and plan in such a way so that all reactions are completed
latest by the evening when the associates leave.
- In order to save energy as well as fuctuating power, supply is given
only through voltage stabilizers and uninterrupted power suppliers.
Supply voltage is monitored with a regulation level of ±1%, the supply
frequency at 50±1Hz and neutral to earth voltage to less than 1volt AC
and earth resistance to less than 1ohm. This also ensures against any
leakage in electricity thereby leading to conservation.
B] Technology Absorption
Plastic Park:Â
- In Drip tape plant Company installed a high precision & high speed
extrusion line to produce tape product and the extrusion line is
capable of producing the Tape with line speed very much higher than
that of line usually available in the market.
- Continuing with the efforts towards productivity improvement, Company
has installed additional high precision all electric injection moulding
machines with hot runner molds for making disc for disc fltration
system.
- Sand Blasting machine has been installed to get SA2.5 type surface
fnish on metal products / parts.
- New Injection moulding machines were procured and installed with
advanced technical feature like injection unit with linear guide rail.
Food Park:Â
a) Fruit
- Painting of re-con drums automated.
- Non chemical water treatment plant  trials carried out to avoid
water scaling in sterilizers. After installation of the non chemical
treatment plant, existing soft water treatment plant will be isolated
for cooling towers only.
- Existing ECRC storage converted to 4-10° C cold storage for storing
of fnished product
- New full length rare earth magnet installed in fruit washer for
better control of metal particles.
b) Onion
- Ozone generation system installed for onion fume water.
- Entire line established from concept to commissioning for onion
dehydration with enhanced onion processing by 25 % i.e. 125 TPD of
extra processing.
- Conversion of steam heated dryer where hot air was made using steam
to direct hot air through hot air generator, it saves electricity
consumption and water.
- Rotary screen used for removal of suspended fbrous impurities from
onion fume water to maintain low turbidity.
- Installation of refrigeration system in DHO packing area to lower the
room temperature so that the DHO can be cooled down thereby it will
remain crispy which will smoothen milling operation.
- Use of High sensitivity gravity fall metal detectors on onion powder
and fried onion packing line.
Energy Park:Â
Solar Photovoltaic:
- Expansion of production capacity by adding 2nd Automatic Module
manufacturing line of 25 MWp & in Manual line by 5 MWp. So, present
Module production capacity is 55 MWp ( 1st Auto line 20 MWp; 2nd Auto
line 25 MWp & Manual Line 10 MWp).
- Development of Transparent PV module using transparent backsheet
which is light in weight as compared to traditional transparent module.
- Received IEC - 61215 (ed 2) for all PV modules 3 Wp to 300 Wp & IEC Â
61730 Part 1 & 2 for PV modules 130 to 300 Wp
- Successfully passed PID (Potential Induced Degradation) test for 4
different PV module families.
- Development of silicone sealant cartridge filling machine. This
machine is able to fll silicone sealant cartridge from bucket because
readymade silicone sealant cartridge are very costly as compared to
silicone sealant in bucket.
- Development of String Transfer unit for manual line. Previously, it
was done by manual fipping. So, it reduces breakage of solar cells
during string transfer.
Solar Thermal: During the FY 2013 - 2014, a plastic inner tank for
storage of hot water is developed in house for the systems up to 300
liters per day capacity. This reduces the overnight heat loss in the
solar water heater system. This development will also increase the life
of the inner tank that are traditionally manufactured in either Mild
Steel or Stainless Steel by conventional welding process.
C] Research and Development
Plastic Park:-
- New fltration system for MIS : Automatic hydraulic & electrical
screen was developed. Its unique features are:
- Energy efficient by about at least 10 - 15% over conventional screen
flters.
- Wide range of availability : 4" to 14"
- Available in standard 100 micron screen but other screen sizes are
also available on request.
- Higher fltration effciency due to high opening area.
«- Simultaneous operation of fltration and fushing and this result in
time saving.
- Filter Screen is available in high quality stainless steel.
- Better cost to performance ratio
- Product range of ASTM fittings expanded by developing reducing Tee 1 x
½" threaded, Reducing Bush ¾ x ½" etc., and SWR fittings range expanded
by developing 90mm vent coul, pipe cliff 90mm etc.,
- Similarly the PVC fittings - union female thread 20 - 63 mm, Threaded
Elbow 63 - 90 mm, single union valve 40 - 75 mm, Elbow 180 mm, reducing
Bush 160 x 140, 200 x 160 180 x 63, Top cap 140, 180 etc., were
developed.
- 630mm PVC pipe was developed and for export market the pipe was made
with Non lead base stabilization system. Production of 630mm PVC pipe
was frst time in India.
- For the Specific requirement of European market, the PVC Integral foam
sheet was made with Non Lead, Non Tin stabilization system and the
product was accepted for performance and requirements.
- PVC Integral foam sheet products range has been expanded by
developing two more new products, namely Rose wood and Dark Brown
Integral foam sheets. The market response to the Rose wood and Dark
Brown has good and with the colour resembled the wood, the products
fnds good response and fnds application for wood replacement.
Food Park
a) Fruit Processing
New product developed Â
- Aseptic Green Mango Puree
- Aseptic Carrot Juice Concentrate
- IQF Ripe Banana Whole and Dices
- IQF Raw Banana Whole
b) Onion Processing
i] Use of UV lights to reduce microbiology of dehumidifed air being
supplied to onion mill.
ii] Retroft of traction controller in battery operated imported
forklift to avoid dependency on imported costlier spares.
iii] Installation of automatic controlled access, hygiene stations at
associate entry as a Pre- requisite requirement to avoid
microbiological and foreign matter contamination.
Energy Park
a] 4,000W BLDC motor based solar pump controller
Solar pump controller is used in Solar Pumping system with very high
effciency BLDC motor. Very wide operating range of voltage and wattage
enables optimized sizing of solar PV array. MPPT functionality makes
the maximum utilization of Solar Power. Sensor less dry run protection,
overload, short circuit, reverse polarity protection provided to make a
reliable and rigid product. All the components used are from standard
makes and by considering the stress on components to get long life of a
product.
b] Development of High Effciency Solar LED Street Light systems
LED base Solar Street lighting system is developed and supplied to the
different location in India to save electrical energy consumption.
System is based on dusk to dawn operation with dimming operation in the
late night to reduce the power consumption. LED Street light saves much
more energy when compared to sodium vapor lamps, metal halide & halogen
lamps. These are stand alone systems with storage battery, luminary
and solar panel on one single pole, hence can be installed in remote
locations as well.
c] Battery Less Solar Tracker System
In this project, we developed the smart solar tracking system. This is
single axis, time based solar tracking system. It is maintenance free
system, as it does not contain a battery. This is rigid and robust
electronics design for solar tracking system. It is plug and play solar
tracker system.
Agri Park & Tissue Culture
a) Twelve fowering related genes had been identified and characterised
in Banana. Out of these three genes look very promising and have
capability to change fowering time in Banana. This work has laid the
foundation of project to reduce life cycle of banana plant.
b) In Mango, five genes associated with regulation of fowering and
alternate bearing had been identified.
c) significant progress has been made in way to develop tissue culture
protocol for mango propagation.
d) Micro propagation protocol of coffee has been developed and ready
for commercialization.
D] R & D Expenditure (Rs. in Million)
Sr.
No. Particulars 2013-14 2012-13
a. Capital Expenditure 13.47 11.68
b. Revenue Expenditure 153.49 173.87
Total 166.96 185.55
c. % of Revenue 0.40% 0.53%
21. Acknowledgement
The Directors take this opportunity to place on record their
appreciation of whole hearted support received from all stakeholders,
customers and the various departments of Central and State Governments,
Financial Institutions, Bankers, the Dealers and Suppliers of the
Company. The Directors wish to place on record their sense of
appreciation for the devoted services of all the associates of the
Company.
By order of the Board
Sd/-
11th August 2014 Anil B. Jain
Mumbai Managing Director
Mar 31, 2013
To the Members,
The Directors present their report on the financial performance,
business and operations of the Company for the year ended 31st March,
2013.
1. Financial Highlights Rs. in Million (except EPS)
Particulars 2012-13 2011-12
Domestic Sales 27,571 30,374
Export Sales & Services 6,490 6,725
Other Operating Income 1,048 712
Sales and Operating Income 35,109 37,811
Operating Profit 6,104 7,968
Interest and Finance Charges 4,422 4,235
Depreciation and Amortisation 1,195 1,007
Profit before taxation and 487 2,726
exceptional items
Provision for Tax Deferred Tax (Asset)/(Liability) 100 485
Current Tax Provision 86 (443)
Profit for the year before Prior 301 2,684
Period Expenses
Prior Period Items-Income/ - 1
(Expenses)
Profit for the year 301 2,683
Profit b/f from the previous year 8,341 6,629
Balance available for Appropriation 8,642 9,312
Out of which the Directors have appropriated
as under;
Proposed Dividend 227 405
Dividend Distribution Tax 39 66
Transfer to General Reserve 30 500
Balance carried forward 8,346 8,341
Earnings per Share (Rs.)
Basic 0.70 6.62
Diluted 0.70 6.62
2. Operations - Standalone
The net sales and operating income degrew by a little over 8%. The
domestic revenues at Rs. 27,562 million were hit harder due to business
model change, especially in MIS/SIS revenues were down 27% YoY, while
smaller businesses like Tissue Culture and Green Energy reported 54.4%,
31.2% growth in domestic business. Export of Piping grew by 39%. The
operating profit fell by over 23% while interest and finance charges
went up by 10% YoY. After the tax adjustments, the profit after tax is
at Rs. 301 million a fall of 89% YoY.
3. Dividend
Sr. Particulars of Dividend Amount (Rs.)
No.
1 25% (Rs. 0.50 per Share) on
435,619,978 Ordinary Equity 217,809,989
Shares of Rs. 2 each
25% (Rs. 0.50 per Share) on
2 19,294,304 DVR Equity 9,647,152
Shares of Rs. 2 each
Total 227,457,141
Dividend Distribution Tax @
3 16.995% 38,656,341
Total 266,113,482
Despite flat performance of the company during the year, the Directors
propose to the Shareholders a Dividend of Rs. 0.50 each on Ordinary &
DVR Equity Shares involving an outlay of Rs. 227.46 million to all
eligible shareholders and Rs. 38.66 million as Dividend Distribution
Tax for the year ended 31st March 2013.
4. Long Term Fund Raising
The following table gives details of major overseas long term funds
raised during the FY 2013;
Nature of funds From Amount Remarks
(I) FY 2013
(a) Equity shares Mount Kellett & Rs. 3978.71 49.73 Mn shares
at premium IFC-Washington Mn
(b) Foreign IFC-Washington $40 Mn Conversion at a
currency price of Rs.115 per
convertible equity share
bonds [FCCB]
(c) External IFC-Washington $75 Mn LIBOR 6 M linked
commercial Rabo 6 to 10 years
borrowings International maturity
[ECB]
(d) Equity Promoters Rs.161.81 Mn 25% security
warrants group deposit as per
SEBI ICDR 2009
(II) FY 2014
(a) FCCB FMO $10 Mn Conversion at a
Proparco price of Rs.115 per
equity share
(b) ECB DEG $65 Mn To replace $51
Proparco Mn raised in (1)
FMO (c) above and
balance $14 Mn
fresh funds all
with 8 to 10 years
maturity
5. Capacity Expansion and Capital Expenditure
The Company has continued its already decided growth/ maintenance capex
and the following table gives the capex incurred for capacity expansion
implemented during the year and the resultant capacity addition in FY
2013:
Sr. Segment name Unit Addition in
Capacity Capex FY 2013
No. for FY 2013 (Rs. in
Million)
1 MIS/SIS Tons 3,900 916
2 Piping Systems Tons 3,720 219
3 Dehydrated Vegetable Tons 0 24
4 Fruit Puree etc Tons 0 99
5 Tissue Culture Nos 20 199
6 Green Energy
[a] Power MW 5 186
[b] Water Heater Mn Ltrs 1 -
7 [a] Solar Power Project - - 219
[b] Admn & Corporate - - 269
Total 2,135
6. List of Awards / Recognition - Financial Year 2012-13
A) Jain Irrigation Systems Limited
Award/Recognition name Instituted by Given for
The Good Company Award Forbes India For impacting the lives of
over three million farmers
by helping them shift to
more scientific and
sustainable agriculture.
Kashalkar Memorial
Award All India Food Outstanding contribution
to the development of Food
Processors''
Association Processing Industries in
the Country (for the
year 2011).
Aqua Excellence Award Aqua Foundation, Outstanding contribution
towards cause of water
private sector.
New Delhi
Award of Excellence Israel-Asia
Chamber of For Leadership, Innovation
and continuous Involvement
and
Commerce and
Industry, Investment in the
Agriculture Technology &
Irrigation Sector in
Israel Israel and in India and
contribution to Israel-Asia
Co-operation.
Star Performer EEPC India
(Formerly Large Enterprise
Agricultural or Forestry
Machinery and Parts.
Engineering
Export Promotion
Council)
APEDA Export Award Ministry of
Commerce Outstanding export
performance and contribution
in the
and Industry, processed fruits and
vegetable sector.
Government of
India
Indian Exporter''s
Excellence Dun &
Bradstreet and Winner position in the Food
and Agro products sector
under
Award -2012 Export Credit
Guarantee the large exporter''s
category.
Corporation of
India Limited.
Felicitation GAIL (India)
Ltd. Ranked 3rd in Top 10
Customers in quantity
lifting of Polyethylene
grade during year 2010-11.
B) Padmashri Bhavarlal H. Jain - Chairman
Award/Recognition name Instituted by Given for
Qimpro Platinum Standard Qimpro
Foundation, National Statesman for
excellence in quality.
2012 Mumbai
Heroes of Philanthropy Forbes Asia One of the 48 Heroes of
Philantrophy in the Asia-
Pacific Region (Published
by Forbes Asia, July 2012)
For people who are giving
their own money, not their
company''s (unless they
own most of the company) &
Bhavarlal Jain opened GRF
cost $6 million shared with
Company).
ISAE Gold Medal
(Lifetime Indian
Society of Outstanding contribution in
Agricultural Engineering
Industry.
Achievement Award) Agricultural
Engineers
Jivan Gourav Puraskar Daryasagar
Samajik Social work.
Sanstha
7. Other major developments during FY 2013
During the year under review the NBFC arm of the group namely
Sustainable Agro Commercial Finance Limited (SAFL) has started its
operations. SAFL company has raised Rs. 60 crores equity and is
expecting soon contribution from International Finance Corporation
(IFC), Washington, an arm of World Bank (WB) who intends to hold 10%
Equity stake for Rs. 69 million in the NBFC.
SAFL has started operations in Maharashtra at about 22 branches since
beginning of 2013 and has divided the state in 4 zones Jalgaon, Pune,
Aurangabad and Amravati with a staff of approx 105 so far. It will
finance for micro irrigation and other products for a tenure up to 3
years. Till date it has sanctioned loans worth Rs. 365 million and
disbursed Rs. 275 million to approx 3,250 farmers.
8. Other major developments post March 2013
The Company is in process of seeking shareholder approval for
divesting/ disposing its Wind Power undertaking through the Postal
Ballot route and shall result in repayment of little more than $ 10
million Foreign Currency loans raised for the project in 2009.
9. Directors retiring and their background
Shri R Swaminathan and Smt. Radhika Pereira are retiring by rotation
and being eligible offer themselves for re-appointment at the ensuing
AGM.
Shri R Swaminathan is B Tech (Chemical). He has been associated with
the Company almost since inception. He was appointed as Whole Time
Director of the Company on 9th May 1996 for 5 years, The appointment
was renewed on 9th May 2001 for 5 years. However, he resigned as Whole
Time Director - Technical on 20th August 2002. He had been appointed
CTO of the Company w.e.f. 20th August 2002. The Board had reappointed
Mr. R. Swaminathan as Whole Time Director designated as Director -
Technical for a period of two years effective from 1st October 2008,
re-appointed as Director - Technical for a period of two years
effective from 1st October 2010 to 30th September, 2012 and further
reappointed as Director - Technical for a period of 3 years effective
from 1st October 2012 to 30th September 2015.
He looks after the technical areas of PVC Pipes, Plastic Sheets and
related business areas. He has worked in almost all the operational
areas and is involved with development of new applications & products
and adaptation of drip technology for Indian conditions. Smt. Radhika
Pereira is a graduate of Mumbai University in science and law and holds
an LLM from Cambridge (England) and Harvard (USA). She has been
associated with the Company since 29 Dec 2005. She is a Managing
Partner of Dudhat, Periera and Associates, Advocates, Mumbai. Over the
years she has worked with Mulla & Mulla, Cragie, Blunt & Caroe,
Advocates and Solicitors, Mumbai, Arthur Anderson & Co, Mumbai, and as
a Partner in Udwadia & Udeshi, Advocates, Mumbai.
10. The operations of subsidiaries
The Mauritius based direct subsidiary of the Company has a revenue of $
478,393 and made a net loss of $ 738,239. Summarised Balance Sheet and
the Income statement of the said subsidiary is available elsewhere in
the Annual Report. The subsidiary has redeemed Preference Shares of
holding Company amounting to $ 6,825,000 during the year under review.
The Netherlands based direct subsidiary of the Company has earned an
income of $1,204,081 and made a net loss of $107,574. Summarised
Balance Sheet and the Income statement of the subsidiary is available
elsewhere in the Annual Report. The resources of this subsidiary has
been further strengthened by infusion of $ 56,290,000 as Equity Share
premium.
Other Subsidiaries
Information on operations of other subsidiaries, including new
acquisitions has been covered in management discussion and analysis in
this annual report.
11. Employee Stock Option Plan (ESOP)
The implementation of Employees Stock Options and Shares Plan, 2005
(ESOP-2005) has continued during the year under review. Till date four
lots are issued to eligible employees including whole time directors,
and key management personnel. No employee has been issued options
entitling such person to subscribe to more than 1% of Ordinary Equity
Share capital of the Company.
12. Director''s Responsibility Statement
In accordance with the provisions of Section 217(2AA) ofthe Companies
Act, 1956, your Directors state that:
i) In the preparation of the annual accounts, the applicable Accounting
Standards have been followed except, to the extent indicated in notes;
ii) The accounting policies are selected and applied consistently and
are reasonable; prudent judgments and estimates were made so as to give
a true and fair view of the state of affairs of the Company as at 31st
March, 2013, and, of the profit of the Company for the year ended 31st
March, 2013;
iii) Proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of
Companies Act, 1956, for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;
iv) The Directors have prepared the annual accounts for the FY ending
31st March, 2013 on a ''going concern basis''.
13. Material Developments in Human Resource
"TRUST" plays a significant role while working at Jain Irrigation.
The Company has an open door and pro-active policy and any associate
desirous of addressing his grievance is entertained and is free to
approach even the Chairman. This openness helps create an atmosphere of
extended family. Resultantly, the operations of all the manufacturing
facilities of Jain Irrigation enjoy whole hearted co-operation and the
spirit of being "One"
Associate Engagement
Apart from the overall development of associates, the Company is
adopting various HR initiatives for bringing in the feel of
"Organization as a large family" amongst not only the associates
but also the families of the associates in a systematic manner. Pilgrim
tours were undertaken for the associate parents and grandparents and
also for the associates who are above age of 45 years. Total 6 pilgrim
tours of 9 days each involved 261 parents & grandparents of 101
associates. People in general find it awkward to discuss about the
issue of infertility and it leads them to not taking proper guidance /
treatment for the same.
Associates having infertility issues were identified and counseling and
proper medical treatment, all expenses paid, was initiated for them. 8
families are enjoying the success and 40 cases are undergoing
treatment. Under ''Vidyarthi Utkarsh Abhiyan'' for children of
associates, the third batch of children of associates between standard
7th and 10th is taking free coaching and 156 students have benefited
from the same. Apart from the academics, 10 days residential
"Personality Development Camp" was organized at Anubhuti School for
109 children of our associates. To ensure that the deserving children
of associates do not get deprived of education due to monetary
limitations of their parents, this year also Company continued to
provide educational scholarship on need and merit basis. 391 children
are awarded scholarship amounting Rs. 63.36 lacs. Special emphasis was
given for the education of the girl child and children of the
associates in low income group. To make a family proud of the role what
their family member is undertaking in the organization, a visit of
family members of associates is conducted to all company locations at
Jalgaon for giving them information about the importance of job of
their family member is undertaking and the unique work culture of the
organization. Total 116 visits of 886 associates covered 4,580 family
members.
Social Involvement
Blood is very much important to save the life of someone. Once again on
demand of the blood banks, a Blood Donation Camp was organized wherein
highest figure of 824 units of blood was achieved by associates in the
Company.
Training
The Company is helping to meet the academic requirements of students
opting for "Agricultural Engineering" by providing them 16 week
training which is mandatory by Universities. The students were given
one month class room training and three months field training in which
students were exposed to the Survey, Design, Installation, Maintenance
of Micro Irrigation Systems and Field Operations. This training gave
the real experience to the students and those proved themselves, were
absorbed by the company.
The training and development activities for all our associates
continued within all our locations.
The location and program wise training details are as under; Associates
Training 2012-13
Sr In House Faculty
No. Location No. of No. of Duration
Programs Associates (Hours)
1 Agri Park 38 362 1,049
2 Plastic Park 614 8,526 28,341
3 Food /Energy Park 236 5,161 10,787
4 Orientation 13 416 22,864
5 Overseas Training - - -
Total 901 14,465 63,041
Location External Programs Total Man
No. of No. of Duration Hours
Programs Associates (Hours)
Agri Park 8 18 301 1,350
Plastic Park 25 43 616 28,957
Food/Energy Park 23 79 1,568 12,355
Orientation - - - 22,864
Overseas Training 1 17 1,768 1,768
Total 57 157 4,253 67,294
Agricultural Engineers'' Training 2012-13
Sr In House Faculty
No. Location No. of No. of Duration
Programs Associates (Hours)
1 Engineer Training 12 233 48,464
2 Engineer Field Training (3 months) - - -
Total 12 233 48,464
Location External Programs Total Man
No. of No. of Duration Hours
Programs Associates (Hours)
Engineer Training 12 271 56,368 1,04,832
Engineer Field Training - 109 42,224 42,224
Total 12 380 98,592 1,47,056
Recruitment and Manpower Strength
The recruitment drive continued throughout the year in search of right
people for right places, which also included the Campus Selection for
Engineering Graduates and Post Graduates from Agriculture field all
over the country. The recruitment was done on the basis of demonstrated
and potential ability, compatibility with the organizational culture,
merit, openness and fitness with son of the soil empathy. The permanent
employee strength of the Company reached 7,903 on 31st March, 2013,
after gross addition of 1,082 during FY 2013.
14. Corporate Social Responsibility & Sustainability Report
a. Corporate Social Responsibility
''Jains'' have always believed in doing business with a social
conscience. Ever since 1963, we have considered Education, Health,
Culture and Environment as the four pillars of society. Their
charitable work was institutionalised in 1982 through the Public
Charitable Trust named ''Jain Charities''. The Foundation has its
roots in rural India. Founders are natives of villages and, therefore,
believe in paying special attention to this neglected class of society.
The Charity Profile is, however, not restricting the activities only
for rural upliftment. The principal goals of the Trust are :
Advancement of education, provision of medical relief, furthering of
rural development & environment, undertaking R&D, promoting sports,
games & physical fitness exercises and initiating and supporting all
round development of education & projects for the welfare of the
society in general.
GRF Activities: As a part of rural development theme the Company has
promoted and supported Gandhi Research Foundation (GRF) a Section 25
Company. Following paras give a brief on its activities during the
year.
GRF has been organizing ''Gandhi Vichar Sanskar Pariksha'' to
inculcate Gandhian values in the minds of young generation for quite
some years. GRF believes that values inculcated in the early days of a
child remain for the rest of his life! This year 100,953 students
participated in this examination throughout Maharashtra. First three
meritorious students from each district have been given special awards
and schools that had sent more than 100 children were given special
trophies.
Keeping Gandhian values in mind GRF, JISL and Arizona State University
organized a workshop - EmPeace Labs 2012 - at Gandhi Teerth (Parishram)
20- 26 October, 2012 covering sustainable agribusiness, leadership and
community development, peace and violence prevention as main trances
further subdivided into several topics. Justice CS Dharmadhikari, Ms.
Neelima Mishra, Dr. YP Anand, Shri Satyanarayana Sahu, Dr. Rajendra
Khimani, Prof. Sudarshan Iyyangar, Prof. M.P.Mathai along with
dignitaries from ASU served as resource persons. Participants from 19
countries participated in this workshop, the largest contingent being
from African countries.
Dr. Rajendra Pachauri has been invited to participate in a National
Workshop on Permanent Development on 2nd January 2013 at Gandhi Teerth
auditorium. Several dignitaries'' from the city and educational
Institutions in addition to associates of JISL and GRF participated.
GRF has also organized a ''Krishi Vikas Prabodhan Yatra'' from 30th
January 2013 to 12th February 2013 in Khandesh rural villages to
educate the villagers on the values of Gandhiji. This Yatra included
Tarsod, Bamgod, Vaghoda, Khirdi, Udli, Mihon-Chinchol, Changdev,
Hingane, Salsingee, Shindi, Kunha- Panache, Garkheda and ended at Neri.
A total of 45,000 students and 5,000 farmers were contacted and they
were introduced to some of the modern practices in agriculture.
In Wakod village a residential ''Shibir'' was organized to inculcate
the Gandhian values and Constructive Programmes in the younger minds -
8 to 11 years - from 26th April to 1st May, 2012.
In Kadauli village another ''Bal Vikas Prabodhan Shibir'' was
organized to share the values of Gandhiji and his Constructive
Programmes among young children of 14 to 18 years from 7th to 12th May,
2012.
GRF has organized a ''Bal Vikas Prabodhan Shibir'' for the children
of 8 to 11 years in Shirsoli village from 15th to 20th May 2012 to
familiarise them with the values of life and the ethos of the
constructive work of Gandhiji. To train the villagers for alternate
source of income, GRF has started a demonstration plant to extract oil
in Jain Valley in March 2013. Villagers are also provided training in
Ambar Charkha and Bunai facility at Gandhi Teerth.
GRF has opened ''Khoj Gandhiji Ki'' Museum in Gandhi Teerth premises
with a view to enlighten visitors with the Gandhian values, his life
and works. From 1st April 2012 to 31st March, 2013 34,838 visitors seen
the Museum and benefited.
Health & Sports: A well equipped modern Gymnasium has been set up and
facilities for lighter exercises have been established for health care.
Coaching and courses on health education have been conducted.
Competitions in almost all the traditional Indian games have been
organized from time to time. These include Khokho, Volley ball, Table
Tennis, Badminton, Swimming, Cricket, Trekking, Cycle Race, Skating,
Marathon, Carrom, Basketball, Football and others. Training camps are
being sponsored for boys and girls under the age of 15. This makes them
proficient for participation at District, State & National level
tournaments. The Trust also adopts girls & boys and prepares them in
such a manner that they can measure upto State & National level sports
& games. Sport- lovers, sportsmen and local dignitaries have always
taken keen interest in these events and supported them wholeheartedly.
The Trust sponsored the state- level cricket match in the ''Ranji
Trophy Tournament 2012-13 season'' which was played on the spacious
lawns of Bhusaval Railway Stadium.
Education: The Trust has set up a primary school at Wakod village. A
kindergarten has been commissioned at the R&D Farm, Jalgaon. The
students are provided with free uniforms and books. The SNJB
Polytechnic College at Chandwad, Dist Nasik, has rendered yeomen
service to the region. A Junior Urdu College was established in memory
of ''Shaikh Noor Mohd. Chacha'' - a person who had been a inspiring
support to Company in its formative years. Donations are made for
English, Urdu, Marathi school buildings and hostels, Anubhuti 1 and 2.
Assistance is given for publications of books & literary seminars.
Students and professors aspiring for higher studies and participation
in conferences, at home or abroad, get financial assistance.
Scholarships are routinely offered to the deserving students. A
Potential Development Academy has been established for encouraging high
school students to appear in the state and national level competitive
exams. It has achieved outstanding results. Those who top the merit
list at the state level are gifted a full set of encyclopedia each.
Medical: The Foundation''s medical activities are organized through:
Specialty and General Medical Camps. Dispensaries & Hospitals for
outdoor patients. Seminars and Discourses with respect to traditional
medical disciplines such as Ayurveda & Homeopathy. Various specialists
and super-specialists in the field of Cardiology, Orthopedics,
Pediatrics, Gynecology, Cancer, ENT and other branches of medicine are
invited at the dispensaries and hospitals or at the medical camps
organised at various locations from time to time. Minor surgical
procedures are also performed at these camps and hospitals. Numerous
patients with such ailments are provided financial assistance for
treatment at a hospital of their choice and need. A door to door survey
of all the families at village Wakod has been completed. This Data Bank
will now help the Trust organise required help for the needy patients.
They may be brought to hospitals in Jalgaon or sent to Bombay for
further medical or surgical treatment, naturopathy center / Anubhuti
Clinic.
Social: Every important social event in the city is eligible to receive
assistance from the Trust. The donation may be for organising seminars,
youth festivals, marriage match associations, vice elimination centre,
for offering calipers & tricycles to the handicapped & aid to the
blind, for building community halls & Dharmashalas, holding religious
discourses & making fund raising effort for the ailing. Voluntary
charitable organizations, like the Lions & Rotary Clubs engaged in
social work, are also being helped in their endeavour.
National/Regional Social impact programmes such as "Rashtra ka
Hunkar", "Jago Hindusthani", "Janta Raja", "Sane Guruji
Teachings" have all been sponsored. A feature film on "Save Girl
Child" Movement & another on "Farmer Suicide" are being screened
for public awareness. A unique effort in celebrating birthdays of the
younger family members and the death anniversaries of the departed
family souls by feeding blind, deaf and dumb and/or street children,
beggars is undertaken as always.
Cultural: Art, Music and Literature are important components of
culture. Dramas, Orchestra, Folk Dances, Singing & Dancing
Competitions, Kavi Sammelans, Humour Melas have been organized from
time to time. These finer aspects of life provide an enduring source of
relaxation and entertainment. These programmes serve as a medium of
education to the young ones. They are a powerful means of building
one''s personality. They also reflect the way of life of our society.
These arts bring out patterns of thoughts, beliefs, customs,
traditions, rituals, dresses and languages of India. These are of deep
interest to the members of our society and particularly to the visiting
foreign dignitaries. Indeed, they get fascinated. They are also seen
participating in such events.
Religious and Spiritual: The Trust has been responsible for building or
renovating or rejuvenating many Hindu Mandirs, Muslims Dargas, Jain
Sthanaks and Dharmshalas. The Foundation has also organised lectures
and discourses by prominent religious leaders and thinkers from time to
time. The Foundation welcomes pilgrims proceeding for the visit to
Pandharpur as a "Dindi". The Trust is a secular body and is eager
to help worthy cause of every religion, whether Hindu, Muslim, Parsi,
Jain or Christian. The study of comparative religion is encouraged as a
matter of principle. We have conducted courses on Transcendental
Meditation of Maharshi Mahesh Yogi, Art of Living of Sri Sri
Ravishankar, Brahma Kumaris and of Yog Nidra by Dr. Manohar Harkari for
the benefit of senior management executives and prominent citizens of
Jalgaon.
City Beautification & Rural Development: The Foundation routinely
undertakes beautification projects in and around the city. The traffic
islands, fountains, landscaped gardens, sky high towers are the
landmarks that have been created/ maintained by the Foundation in
Jalgaon city, Kavya Ratnavali Chauk. Development of villages is
supported through provision of roads, street lights, gutters, drinking
water facility and settlement of interpersonal grievances.
Jain Hi-tech Agri Institute: The Foundation has established a High-Tech
Agro Development & Training Centre. The Centre conducts training
programmes in the field of agronomy, irrigation and pre & post harvest
technologies as well as crop protection. These programmes are for
extension workers, farm engineers and agro extension & research,
government & semi- government institutions.
The Future: Growth in terms of Profitability and Balance Sheet have
never been the only concerns for Company. With the passage of time and
material progress, they have continued to expand even their
philanthrophical horizons. There are no limits to human generosity and
human sufferings. We hope to contribute to alleviating distress and
pain. The future plans include major financial assistance for setting
up a Research institute and Hospital, a Teacher''s Training Institute
and an Institute for Eye Care and Bahinabai Memorial Trust. Add to it
ongoing projects of Gandhi Research Foundation and Rural Development
and it can last forever.
B. Sustainability Reporting
Our third attempt of Sustainability Reporting for the year 2013 is in
process. This report covers all the operations of Jain Irrigation
around the globe. This report covers all the information, process and
materiality related to Economic, Environment and Social aspects of the
organization in the year 2011-12 and 2012-13. Few of the sustainability
aspects carried by Jain Irrigation are highlighted below:
Renewable Energy: Biogas Power Project. Company''s waste of mango
peels and other fruit/vegetable waste is converted into biogas and used
for 1.7MW Biogas project. This is first of its kind Biogas power
project in India, due to it design and multi feed system (as recognized
by MNRE). This is connected to Grid at 33KV level. This also Project
registered for REC and will get registered for CDM very soon. Solar
power project 8.5 MW solar photo voltaic power project has also been
connected to grid at 33KVA level and this will be wheeled and used for
captive purpose. This project is registered for REC and cDm both.
Sustainable agriculture: Ultra high density mango plantation with
incorporation of JAIN-GAP: along with the partner Coca Cola India
started UNNATI in south India with target of 50,000 acres of area. A
successful model of contract farming of onion is already successfully
running for last 10 years, this year contract farmers supplied 55,000
MT of onion. Tissue culture banana and pomegranate saplings also
support the increase in productivity in the farmers field.
Jain Watershed: Rain water harvesting in 500 acre barren land converted
into lush green hills, It is training centre for farmers and farm
related activities. It is biodiversity park in making, with rich
biodiversity. Carbon credit: Four different kind projects registered
with UNFCCC:
1. Banana crop irrigated on Drip in Jalgaon, Dhule, Nandurbar and
Nasik District.
2. Fuel switch to biomass in ''Chittoor'' mango processing plant in
Andhra Pradesh.
3. 13.2 MW wind power project in Theni, Tamil Nadu.
4. 8.5 MW solar photo voltaic power project in Jalgaon, Maharashtra.
Sustainable solutions in water sector: Besides drip irrigation solution
provided to the small and marginal farmers. There are other 24X7 water
supply schemes implemented in some of the cities of India, with
increased efficiency, and also on demand irrigation based on canal
command area irrigation scheme implemented with drip irrigation, Solar
pumps etc to increase overall benefit to farmers.
15. Environment Health and Safety performance
The following steps have been initiated during the year 2012-13:
- The Company is maintaining Integrated Quality Management System
with integration of ISO 14001, OHSAS 18001 & ISO 9001 management and
certifications are maintained for its Jalgaon, Hyderabad & Udumalpet
Plants. For Alwar and Bhavnagar plants the Integrated Management System
certification is planned to be completed by first half of the FY
2013-14.
- Rain water harvesting is done from factory open area as well as
from roof top in buildings and same is used for recharging of wells
through suitable structures.
- Certification for Energy management System (ISO 50001) and
Greenhouse Gas management systems (ISO 14064) is planned to be
completed by first half of the FY 2013-14.
- Fire hydrant system at Plastic Park, Jalgaon has been made fully
operational covering complete manufacturing facility. First aid hose
reels are provided inside the MIS finished goods warehouse and internal
fire hydrant system is planned for PE and PVC Pipe buildings. Initial
review, designing is done for fire hydrant system at Hyderabad and
Udumalpet plants and it is planned to be completed by end of FY
2013-14.
- Substantial reduction in noise levels (90 to 81 dB) in Polytube
grinding section is achieved by installation of the grinder
underground.
- Smoke detection & alarm system is installed in HR, PRO office and
Accounts office building.
- Fully automatic in-built blower slitting machines (close type) are
procured and installed on shop floor to reduce the dust in workplace
environment.
16. Internal Controls and Management Information Systems
ERP
Post implementation of SAP across India locations, now some more
modules are taken up for implementation which would further improve the
efficacy and MIS reports from the system.
Internal Controls
SAP implementation allowed a number of strategies to implement internal
control in the business application through process mapping,
segregation of duties, authorisations. Independent of the SAP
functionality and control check, your Company is proactively
identifying the areas for further improvement which shall remain an
ongoing process.
Future
The Company has plan to integrate its IT infrastructure by rolling out
SAP at foreign subsidiaries to further streamline Manufacturing, Supply
Chain, local and global reporting, analysis in a common enterprise wide
format. It will provide better collaboration with our worldwide units,
transparency and efficiency for global operations.
Internal Audit
The company has continued to avail services of Ernst & Young LLP to
conduct internal audit in SAP environment and add value by
strengthening internal controls and improving efficiency of operations
at same time.
17. Fixed Deposits
The Company, during the year under review, has not accepted nor renewed
any deposits from public, under the Companies (Acceptance of Deposits)
Rules, 1975. The Company had no unclaimed / overdue deposits as on
31st March, 2013.
18. Auditors
The Auditors, M/s. Haribhakti and Co., Chartered Accountants, Mumbai
have furnished a Certificate under Section 224(1 B) of the Companies
Act, 1956 that their proposed re appointment, if made, will be in
accordance with the said provision of the Companies Act, 1956. The
Audit Committee has recommended that M/s. Haribhakti and Co., a firm of
Chartered Accountants, Mumbai be reappointed as Statutory Auditors. The
Shareholders may reappoint the Statutory Auditors as per AGM Notice
attached separately.
19. Particulars of Employees
As per provisions of Section 217 (2A) of the Companies Act, 1956 only
six of the persons in employment of the Company have drawn remuneration
in excess of Rs. 500,000/- per month, during the year under review or
part thereof as per details in the Annexure to this report.
20.Particulars of Energy Conservation, Technology Absorption, Research
and Development, Foreign Exchange Earnings and Outgo.
A) Energy Conservation
Plastic Park
Installation of insulating pads to die heads of higher large diameter
HDPE pipe resulted in reduction of loss through surface by 50%. In PVC
sheet energy consumption in grinding section reduced by 10% per day due
to use of high wear resistant blade material. In PVC sheet 100%
reduction in energy consumption during sheet cutting of thickness up to
5 mm by replacing Saw Motor to Knife Blade. Automation in cooling tower
operation based on temperature resulted in savings of 20-30%.
Rationalizing/replacing old water circulation pumps with high
efficiency resulted in reduction in energy consumption to tune of
15%-20%. Retrofitting of old Injection moulding with servo motors
resulted in 40% reduction in electricity consumption and increase in
production due to lower cycle time. In PVC pipe division automatic
vacuum control system was developed for duel vacuum tank to reduce
electricity consumption by 50%. Adaption of variable frequency drive on
Polo series injection moulding has resulted reduction in energy
consumption to tune of 20% per kg. Further use of VFD resulted in
67,000 units. Raw material packing is changed from 25 kg bags to 17 ton
bags for LLDPE and HDPE has resulted in reduction of packing material
and waste generated from the same. Foggers and green net is provided to
chilling plants to avoid the effect of atmospheric temperature on the
chilling plant in summer season. This has helped in saving the
electrical energy and maintaining required temperature of process
water. All bore well pumps are connected to sensor for ON/OFF operation
as per tank condition, has helped to save electrical energy and water.
Lift is provided for material handling in engineering development
department, has helped to reduce manual material handling and stress to
associates.
Company has installed 132KVA substation for unperturbed power supply
and this has reduced the frequent power failures which were earlier
affecting the processing and generating waste for reprocessing. The
very basic nature of the Company''s production being a continuous
process this step taken by Company has allowed the plants to complete
eliminate the rejection due to start/stop process on account of power
interruptions. The overall process rejection has come down drastically
because of this effort.
Food Park
a) Fruit Processing
Replace the rotatory drum (Quantity 8No''s) filter with parabolic
filter for fruit washer, resulting in net electricity saving, 8
kw/hour, Saving of 10,000 kwh/annum. Modification in sterilizer
operation to save steam and electricity. We have modified the
sterilization and water production program and installed diversion
valve at cooling circuit, thereby saving 306 kg of steam per
sterilization cycle and 159 kg of steam per water production cycle. Net
saving is 1,27,560 kg/annum.
b) Onion Processing
- Conversion of DHO storage cooling from DX system to VAM based
chilled water circulation.
- Online pneumatic transfer of dehydrated onion from dryer outlet to
mill for further processing to save manual handling and packing
material, storage energy.
- Revamping of mill equipments to minimize product lifting and there
by saved energy.
- Reuse of process water with adequate filtration to reduce raw water
consumption.
- Conversion of Dehumidifier condenser from air cooling to water
cooled, has resulted into uniform cooling also reduction in compressor
pressure. Total Investment INR 7 lakh. Total amount saved/year INR 14
lakh.
- Replacement of HPMV lights of 290 watt with CFL light of 144 watt
resulting into saving of 30,660 kwh/annum. Total Investment INR 1.65
lakh. Total amount saved/year INR 2.3 lakh.
- Installation of Turbo Ventilators on roof.
- Earlier total 5 exhaust fan of 5.5kW rating are used. Now 40 turbo
ventilators are used for ventilation. Total Investment INR 6 lakh.
Total amount saved/year INR 7.8 lakh
Energy Park
Under energy saving and energy management program, energy saving of air
compressor and LED Lighting is carried out in Energy Park.
Agri Park & Tissue Culture
New experiments were initiated to use LED light for tissue culture
plants. If this experiment succeeds, it will help in reducing energy
consumption in two ways; (i) less energy consumption to provide light
to the plants in tissue culture, (ii) less heat generation from LED
bulbs as compared to fluorescent lamp resulting in to less energy
required to maintain temperature in growth rooms. Tissue culture
unit''s hardening facility has been re-organized and re-assembled for
roof and runoff water harvesting. Irrigation of green house has been
shifted on solar power.
B) Technology Absorption Plastic Park
In PVC pipe division new software was installed in few extruders &
utilities for collecting online data on process details and this has
improved overall control on process. At R&D laboratory new instrument
viz. optical Emission spectrophotometer was installed for controlling
the quality of metal parts used in manufacturing as well as in MIS/SIS
products. Continuing with the efforts towards productivity improvement,
Company has installed additional high precision all electric injection
moulding machines with hot runner moulds for round and flat emitters.
The Company has installed facility and developed thermoforming process
for the production of tray for primary hardening of tissue culture
Banana plant.
Energy Park
a) Solar Thermal
During the FY 2012-13, we have introduced new laser welding technology
with full sheet Aluminium absorber in solar thermal flat plate
collector production line. This technology enables production of solar
absorbers with combination of Cu-Cu, Cu- Al & Al-Al material which
improves product quality, performance & productivity. This will also
enable us to produce air dryers suitable for drying farm produce in
rural India, hygienically.
b) Solar Photovoltaic
Development of prototype Auto-defrosting PV Module for snow bound areas
of Europe. Trial was highly successful. Modified Autoline Tabber &
Stringer''s hardware and software to make it suitable for cut cell
module corresponding to 74 Wp module. Development and introduction of
Sheet (EVA & Backsheet) cutting station with mechanized cutter in the
manual line. Development of automatic framing machine for small modules
by bench marking of foreign machine.
Agri Park & Tissue Culture
New automated machines have been introduced in primary and secondary
hardening sections of tissue culture unit. These machines are capable
of automatically filling trays/cups and transplant plants into it. This
has helped in increasing our capability to harden more number of plants
and reduce manpower requirement per plant besides producing better
quality plants.
C) Research and Development Plastic Park:
Jain Turbo Tape PC - A pressure compensating seamless drip tape.
Jain Turbo Tape PC is a drip tube with a continuous flow path with
inlets that is separated into individual emitters by the design of the
inserted ribbon using a cross over. Jain Turbo Tape PC compensates for
pressure and allows for a uniform distribution of water greatly
improving crop uniformity and energy usage. Each emitter along the line
delivers uniform discharge within specified pressure compensating
range. The design of the emitter allows the product to be resistant to
debris in the line which is in agriculture water and can typically
cause plugging problems of the emitter. Jain turbo tape PC allows
pressure compensation in a very low pressure range that has been
unattainable previously. Pressure compensation at 0.4 to 1.0 Kg/cm2 at
low energy levels in achieved and this has never been done before. The
design is very cost effective and suited to high production speeds. It
inhibits the clogging in the range which coupled with compensation
overcomes all previous barriers to agriculture field design. These
advantages translate to lower energy costs, water savings, improved
yields and improved crop uniformity. Company has filed a application
for patent which is pending.
Complete range of high precision jets have been developed.
In the area of MIS/SIS and pipes & fittings nearly about 160 moulds
were developed for new products as well as for existing range
extension, with added new features. Metallic QC fittings in sprinkler
systems replaced and developed with plastic molded fittings. All
metallic headers in filtration and fertigaton system changed with
plastic headers. PE tubes with coloured skin on outer surface
developed. It is available in white, brown and purple colours. White
colour tubing is used for Greenhouse application, Brown colour for
landscape application and purple colour for reclaimed water use. Pipes
and fittings developed as per ASTM standard and the product range is
widened. To the cater the domestic market requirements coextruded
celuka / PVC Integral foam sheet with coloured skin - 4 new colours on
both sides developed.
Food Park
a) Fruit Processing Product Improvement
- Extension of Clarified Juice concentrates for Papaya, Banana and
Guava.
- Developed Mango, Banana, Guava, pomegranate Juice for In-house
consumption.
- Replaced Liquid ring Vacuum Pump with Mist Condenser to Luwa
Evaporator. Due to this product quality is improved.
- Installed Internal air circulation fan in Evaporative ripening
chamber for even ripening of fruit.
- So product quality is improved. Installed multiple magnets and
strainers to improve product quality.
Automation
Installed PLC based SCADA system for Preparation line and tanks. Due to
this Benefits are as under:
- No Over flow of product
- Dry run protection to pumps, resulting in less maintenance.
- Automatic shut off in case of fail or malfunction.
b) Onion Processing
Efforts for improving microbiological quality of product using UVC
hoods on cut onion and dehydrated onion.
Energy Park
Improvement in 4,000W BLDC pump controller for short circuit
protection, overload, reduction in power dissipation to reduce heating.
Presently under validation.
Battery-Less Solar Tracker Controller - This is unique design of Single
axis Solar Tracking system which does not require any battery for its
operation. No Manual setting, very easy installation, automatic system
detection, automatic fault detection & correction, Very rugged
electronic design to meet EMI-EMC & safety standards, Zero maintenance
are some key features of the system.
- Field problem of 11W CFL luminary observed due cold temperature, we
have improved design to function properly in range -20°C to 55°C of
temperature.
- CFL lantern new version design started to reduce cost,
manufacturing efforts.
- Inverter development for utilization of solar power when solar pump
is not in use. This inquiry received from Rajasthan. Prototype
development is complete.
- CFL lantern and CFL Street light product modification as per MNRE
new specs and approved from MNRE.
Agri Park & Tissue Culture:
Studies on the molecular mechanisms of flowering: After the success in
identifying flowering genes in banana and onion, we are now venturing
towards identification of Flowering Locus T (FT) as well as Terminal
Flower (TFL) in Mango (Mangiferaindica). This crop has been taken under
R&D simply because of its popularity as a fruit crop that is much
suited for processing and onward for export. Our ultimate research aim
would be to conduct functional expression studies to ascertain which
among these are important in flowering. Similar studies are also
underway in Pomegranate (Punica granatum) to study the roles of genes
in flowering.
- Onion breeding program has resulted into development of new high
solid and CMS lines. These new materials are under evaluation for
their commercial exploitation.
- A new crop, Leek (Allium porrum L.) has been introduced and inhouse
seed was developed for commercial cultivation.
- Trials on evaluation of oranges varieties suitable for processing
on own research farm and farmers fields are under progress with very
promising initial results.
A new protocol for Strawberry tissue Culture: Field trials of the
tissue culture strawberry plants have given encouraging results at
farmer''s field. The research and development unit has handed over the
system to the production unit for commercial propagation of the crop.
In this way, our Tissue Culture Division is introducing its third
product on a commercial scale.
- New tissue culture protocols for citrus rootstock have been
developed and tissue cultured rootstocks are under testing in nursery.
- Biochemical and molecular characterization of two newly isolated
methanogens was carried out and they were named as Methanosarcinamazei
Met5BHJ & Methanosarcinamazei TMA3RMK. The above 2 isolates can be
further utilized in our Plant to enhance Methane % with high Biogas
yield.
- Thiobacillus culture development for H2S reduction in Biological
Scrubber.
- Standardization of Soil conditioner cultures as per requirement of
Biofertiliser.
- Optimization of HRT, pH & Temperature for maximum Biogas
Production.
R & D Expenditure (Rs. in Million)
Sr. 2012-
Particulars 2011-12
No. 13
a. Capital Expenditure 11.68 269.51
b. Revenue Expenditure 173.87 180.61
Total 185.55 450.12
c. % of Revenue 0.53% 1.19%
21. Acknowledgement
The Directors take this opportunity to place on record their
appreciation of whole hearted support received from all stakeholders,
customers and the various departments of Central and State Governments,
Financial Institutions, Bankers, the Dealers and Suppliers of the
Company. The Directors wish to place on record their sense of
appreciation for the devoted services of all the associates of the
Company.
by order of the Board
Sd/-
Anil B. Jain
Jalgaon, 14 August 2013 Managing Director
Mar 31, 2012
To the Members,
The Directors present their report on the financial performance,
business and operations of the Company for the year ended 31st March
2012.
1. Financial Highlights Rs. in Million (except EPS)
Particulars 2011-12 2010-11
Domestic Sales 30,374 27,349
Export Sales & Services 6,725 5,158
Other Operating Income 712 802
Sales and Operating Income 37,811 33,309
Operating Profit 7,968 8,032
Interest and Finance Charges 4,235 2,917
Depreciation and Amortisation 1,007 840
Profit before taxation & exceptional
items 2,726 4,275
Provision for Tax
Deferred Tax (Asset)/Liability 485 200
Current Tax-Provision (443) 909
MAT Credit - 201
Profit for the year before Prior
Period Expenses 2,684 2,965
Prior Period Items- Income/ (Expenses) 1 12
Profit for the year 2,683 2,953
Profit b/f from the previous year 6,629 4,449
Balance available for appropriation 9,312 7,402
Out of which the Directors have
appropriated as under;
Proposed Dividend 405 386
Dividend Tax 66 64
General Reserve 500 300
Transfer to CRR - 23
Balance to be carried forward 8,341 6,629
Earnings Per Share (Rs.)
Basic 6.62 7.75
Diluted 6.62 7.74
2. Operations
The sales & operating income grew by a little over 14%, even as
domestic revenues remained flat at 11.1% YoY, while the exports jumped
up by 30.4% YOY. In the domestic revenues the growth was mainly
contributed by 11% YOY growth in MIS/SIS, 16% agro processing, 5% Pipes
and 127% Green Energy businesses. The 30.4% overall growth in exports
was contributed by MIS 62%, PVC Pipe 59.5%, PE Pipe 111%, PVC Sheet
27.8%, Onion 21% and, generally the strong exports trend in 2nd half of
Financial Year 2012. The actual losses on account of adverse Rupee
Dollar movement is Rs.145 million out of total largely notional expense
on this account of Rs.1,289.3 million. The Finance charges are a little
over 10% of Revenues and much above the targeted level of 5% mainly due
to delays in receivable collection (subsidy receivables from
Government). The remedial steps are discussed else where in the report.
The profit for the year is Rs.2,683 million a decrease of 9.5% over last
years level.
3. Dividend
Sr.
No. Particulars of Dividend Amount (Rs.)
50% (Rs.1/-per share) on 38,8586,085
1 385,886,085
Ordinary Equity Shares of Rs. 2 each.
50% (Rs.1/- per share) on 192,94,304
2 19,294,304
DVR Equity Shares of Rs. 2 each.
Total 405,180,389
3 Dividend Distribution Tax @ 16.2225% 65,730,389
Total 470,910,778
The Directors propose to the Shareholders a Dividend of Rs.1 each on
Ordinary & DVR Equity Shares involving an outlay of Rs.405.18 million to
all eligible shareholders and Rs.65.73 million as Dividend Distribution
Tax for the year ended 31st March 2012.
4. Allotment of DVR Equity Shares and Status of QIP
On receipt of approval from SEBI for relaxation from sub rule (7) of
Rule 19, read with clause (b) to sub rule (2) of Rule 19, of the
Securities Contract (Regulation) Rules, 1957 the Company fixed a Record
date in consultation with the Stock Exchanges and completed the
allotment of 19,294,304 DVR Equity Shares of Rs. 2 each by capitalising
reserves of Rs. 38.59 million on 10th November 2011.
The Company had procured Shareholders approval for issue of upto 331
lac Ordinary Equity Shares of Rs. 2 each under Qualified Institutional
Placement (QIP) programme but the approval lapsed in March 2012 due to
uncertain and unfavourable capital market conditions.
5. Capacity Expansion and Capital Expenditure
The Company has been in continuous growth mode and the following table
gives the capex incurred for capacity expansion implemented during the
year and the resultant capacity addition in Financial Year 2012, as
also the revenue growth for last 5 years for each of the segment of
business.
Addition in Capex 5 Year
Sr. Segment Capacity Financial CAGR% till
Unit
No name for FY Year 2012 Financial
2012 (Rs. in Mn) Year 2012
1 MIS/SIS Tons 51,410 2,556 39%
2 Piping Systems Tons 8,350 312 20%
Dehydrated
3 Tons 690 154 19%
Vegetable
4 Fruit puree etc Tons 11,925 44 25%
Tissue Culture
5 No 10,000,000 28 30%
Plant
Solar (Water
6 Ltr 2,000,000 140 67%
Heater System)
6. Significant Awards, accolades & recognitions
The Company has received several awards on International, National and
State level during the Financial Year 2012, however significant ones
are:
- G20 Challenge on inclusive award. Only 15 global Companies have been
awarded for their efforts in inclusive business innovation in their
respective fields of business (e.g. Agriculture for Jain irrigation) at
G20 Leaders Summit at Cabos in Mexico.
- New Sustainability Champion Award at World Economic Forum,
Switzerland/ China for Sustainable Development of business. Jain
Irrigation was awarded (being one of the 16 Companies selected world
over from 1,000 Companies) for sustainable development of business.
- Inclusive Agri Business Leadership Award Instituted by International
Finance Corporation (World Bank Group) Washington, D.C. The
International Finance Corporation selected Jain Irrigation among 200
IFC Clients from across 80 countries . The award criteria was the
inclusive business strategy (involving 4.5 million farmers who
benefitted from the activities of Jain Irrigation).
7. Other major developments during FY 2012
- The Company has in last few quarters embarked upon the strategy shift
in MIS / SIS business by reducing the dependance on subsidy as sales
driver for the business. On the other hand focussed approach is
initiated to collect all the subsidy based and other overdue
receivables. The strategy may result in change in growth trajectory of
MIS/SIS business in FY 2013 but, is expected to yield better results
for cash flows.
- During the year the Company together with Coca-Cola University
launched Project Unnati to train farmers on Ultra High Density
Plantation under a joint capability building program . Project Unnati
is set to be a key milestone towards the large scale adoption of Ultra
High Density farming Practice (UDHP) leveraging drip irrigation.
Introduction of Ultra High Density Plantation will double the average
mango yields and hence benefit the farmers and assure steady supplies
to the Company. Project Unnati has the potential to improve the
livelihoods of more than 50,000 farmers in the next five years. In
traditional mango cultivation, trees are allowed to grow as high as
possible; they are pruned minimally or not at all. In UHDP, canopy is
maintained in such a way to attain maximum light interception and
canopy volume per unit area in early years of plantation. This leads in
the orchard to attain full potential in 3-4 years. The UHDP would allow
600 trees to be planted in an acre instead of just the conventional 40
trees to an acre.
- On 10th December 2011, in an unfortunate incident, fire broke out at
finished product storage area at plastic manufacturing complex in
Jalgaon. The fire was brought under control within 2 hours. No
casualties were reported and plant and equipment remained safe. A claim
under the fire Insurance Coverage Policy has been filed and is under
process with insurance provider at present. The amount of loss is not
material in context of overall asset size of the Company.
The commercial operation for Alwar plant has started during Financial
Year 2012 and it has helped Company to cater to the Northern market
which has large potential for products of the Company.
- A unique one-day international symposium on "Building Shared Value in
Agribusiness" was organized by our Company and Enterprise Solutions to
Poverty (ESP), USA, at Jalgaon on March 12, 2012. Management experts
such as Dr. Nitin Nohria, Dean of Harvard Business School (HBS), Dr.
Ray Goldberg, an HBS Emeritus and regarded as the father of
agri-business programme at HBS and Dr. Kasturi Rangan, who teaches the
Base of the Pyramid course at HBS, delivered the keynote addresses at
the symposium. Themes discussed at symposium were as follows:
Building innovative aggregation models and distribution systems will be
essential to provide efficient, mutually profitable access to inputs,
information, advice, finance and markets to many small farmers, using
direct engagements of large and small agribusinesses, competent
producer organizations and agro-dealer distribution systems.
Increasing the supply of productivity enhancing inputs bundled with
advice and information will be important to increase yields and
earnings of farmers who have uneven awareness and receptivity to modern
methods.
Accelerating the move from food to drip irrigation will produce
dramatic benefits in increased yields and water conservation and
finding solutions for very small farmers.
Increasing mechanization will be needed to respond to the organic
consolidation combined with labour shortages occurring in agriculture,
as a result of urban migration, agriculture development in states that
have been traditional sources of seasonal labour, and unintended
consequences of rural poverty subsidies.
Increasing farm family incomes - through value chain operations in
higher value commodities as well as agri- solutions and agri-finance
are needed if ambitious, more highly educated young people are to be
induced to stay in and enter agriculture.
Increasing storage, value chain and other post- harvest solutions are
needed to reduce wastage of agricultural produce.
Increasing access to finance and crop/weather insurance need to be
combined with inputs, advice and market linkages if productivity and
earnings are to increase.
This was historical seminar where large number of senior business
leaders from Agri business community across India and Africa had got
together to discuss 'ways to create share value in agri business' and
to help small farmer prosper.
- Since April 2012, the Cost Audit Branch, Ministry of Corporate
Affairs, Government of India has notified a certain set of companies
for maintenance of Cost Accounting Records and its Audit as per Cost
Accounting Record Rules and relevant provision of the Companies Act,
1956. This measure is applicable to the Company for FY 2013 onwards
(although not applicable to all the products or units of Company), and
is likely to help in cost control and reduction across the Company.
8. Other strategic and major developments post March 2012
- In May 2012 the Company's multi-generation subsidiary signed
definitive agreements to acquire balance portion of share capital of
Naan Dan Jain Irrigation CS Ltd, Israel from JV shareholder Kibbutz
Naan. Naan Dan Jain itself has several operating subsidiaries all over
the world together with distribution points across globe. The
transaction also opens up markets in various countries for our Company
specially in the high potential African continent the eastern European
nations and the CIS nations.
- In July 2012, the NBFC promoted by our Company aptly named
Sustainable Agro Commercial Finance Ltd. (SAFL) received registration
certificate from RBI to operate. The JV NBFC shall be issuing shares to
Jain Family entities, IFC-Washington and our Company shortly as per its
business plan/budget. SAFL will be a unique and first Indian NBFC to
provide agriculture related loans and provide farmers with wide and
diverse range of financing options for almost every need of
agricultural activity.
Our Company has decided to promote SAFL with an overall objective of
serving the small farmers in comprehensive manner. In FY2013 the NBFC
SAFL shall open upto 40 offices in Maharashtra and in second phase over
18 months more offices shall be opened across Andhra Pradesh, Gujarat,
Madhya Pradesh, Karnataka, Rajasthan & Tamil Nadu. SAFL will leverage
on the existing 3,000 strong dealer/ distributor network of our Company
for identifying and originating quality business and these dealerships
would also be part of the recovery process. In the initial 2 years SAFL
shall concentrate on providing loans to cover MIS/SIS business directly
to farmers. In the subsequent years it will extend financing to farm
equipment and shall give small agri business loans also. Apart from RBI
supervision there will be independent Auditors, Board supervision, to
ensure Corporate Governance, transparency and professional management
of SAFL.
- During the FY 2012, Company has completed all effective actions to
build a 8.5 MW Solar Power Project with funding from internal accruals
and infrastructure financing institution. The Company can potentially
save over 75% of cost of electricity (assuming captive use and
investment linked incentives) as also carbon credits for 21 years at
almost Rs. 1 per unit over the project life of 25 years. It is run by
photo voltaic panels with a 3 phase inverter without battery. The
project is estimated to generate over 14 Million units of electricity
annually and is expected to be integrated with grid very soon.
- The Board has approved fund raising by way of preferential issue of
Ordinary Equity Shares/ Equity Share Warrants, Foreign Currency
Convertible Bonds and External Commercial Borrowings, all aggregating
upto $ 210 mn. 2 subcomittees of Board have been constituted to
finalize the terms, amount, other details and issue the notice for the
Shareholders General Meeting for approving the same. More details about
fund raising shall follow in Notice convening the Shareholders General
Meeting very soon.
9. Directors retiring and their background
Retiring Directors
Shri. Atul B. Jain and Shri Ramesh C.A Jain are retiring by rotation
and being eligible offer themselves for reappointment at the ensuring
AGM.
Atul B. Jain was appointed on 1st September 2009. He is a Commerce
Graduate. He joined the management
team in 1992. He was posted in London office and developed the Food
Processing/ distribution business in Europe and helped the Company to
maintain the plastic exports to Europe. He was appointed CMO of the
Company w.e.f. 20th August, 2002. Besides overall marketing management
responsibility he has also handled all India marketing function of Drip
Irrigation and PVC pipe products, PE and other speciality pipes and
fittings all over the world. He has been involved with development of
new applications & products in overseas markets for food and plastic
divisions.
Ramesh C.A. Jain was appointed on 30th September, 2005. He holds a
Bachelor of Arts degree from the University of Rajasthan, a Bachelor of
Law degree from the University of Bombay and a post-graduate diploma in
Development Administration from the University of Manchester in the
United Kingdom. He has 10 years of experience in the industrial
development and financial sectors. In 2003, he was Secretary of the
Department of Agriculture and Cooperation in the Ministry of
Agriculture at New Delhi and was responsible for the formulation and
implementation of national policies and programmes for agricultural
development. In 2004, before joining the Food and Agriculture
Organization of the United Nations as its Country Representative in the
Philippines, he held the post of Member Secretary, National Commission
on Farmers, established by the Government of India.
10. The operations of subsidiaries
The Mauritius based direct subsidiary of the Company has earned an
income of $ 430,149 and made a net loss of $ 811,869. Summarised
Balance Sheet and the Income statement of the said subsidiary is
available elsewhere in the Annual Report. The resources of the
subsidiary have been further strengthened by infusion of $0.450
Million. as loan during the year under review. The Netherlands based
direct subsidiary of the Company has earned an income of $1,068,190 and
made a net loss of $312,860. Summarised Balance Sheet and the Income
statement of the said subsidiary is available elsewhere in the Annual
Report. The resources of the subsidiary have been further strengthened
by infusion of $5 Million as Equity Capital/ Share premium.
Other Subsidiaries
Information on operations of other subsidiaries, including new
acquisitions has been covered in Management Discussion and Analysis in
this annual report.
11 . Employee Stock Option Plan (ESOP)
The implementation of Employees Stock Options and Shares Plan, 2005
(ESOP-2005) has continued during the year under review. Thus, four lots
are issued to eligible employees including whole time directors, and
key management personnel. No employee has been issued options entitling
such person to subscribe to more than 1% of Ordinary Equity Share
capital of the Company.
12. Director's Responsibility Statement
In accordance with the provisions of Section 217(2AA) of the Companies
Act, 1956, your Directors state that:
i) in the preparation of the annual accounts, the applicable Accounting
Standards have been followed except, to the extent indicated in notes;
ii) the accounting policies are selected and applied consistently and
are reasonable; prudent judgments and estimates were made so as to give
a true and fair view of the state of affairs of the Company as at 31st
March, 2012, and, of the profit of the Company for the year ended 31st
March, 2012;
iii) proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of
Companies Act,1956, for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;
iv) The Directors have prepared the annual accounts for the Financial
Year ending 31st March, 2012 on a 'going concern basis'.
13. Material Developments in Human Resource
"TRUST" plays a significant role while working at Jain Irrigation. The
Company has an open door and pro-active policy and any associate
desirous of addressing his grievance is entertained and is free to
approach even the Chairman. This openness helps create an atmosphere of
extended family. Resultantly, the operations of all the manufacturing
facilities of Jain Irrigation enjoy whole hearted co-operation and the
spirit of being "One".
Associate Engagement
The activities for engaging the associates with their families continue
to move ahead. Pilgrim tours continued for the Associates above the age
of 45 and their parents and grand parents. Total 12 pilgrim tours of 10
days each involved 576 parents and grandparents of 102 Associates. The
initiative launched last year to treat the Associates of Jain
Irrigation facing infertility problems has resulted in success. From
the Associates who opted to be treated last year, 6 cases could see
success which has brought lot of joy of our Associates and their
families. Our efforts for coaching / training children of our
Associates has started taking strong roots as the second batch taking
up SSC examinations also produced 100% results. These efforts start
from class 7th and 105 students benefitted from the same. Apart from
the academic coaching, a 15 day residential "Personality Development"
camp was organized at Anubhuti School for the children of our
Associates for the 2nd year wherein eminent speakers from the different
faculties had a dialogue with the participating children. 92 children
of the Associates benefitted from the program. The practice of
providing educational scholarships to the deserving children of
Associates on need and merit basis has continued. 432 children of our
Associates benefitted with the scholarship. Also special emphasis was
given for education for the girl child. The visits of family members of
the Associates, to all the locations of the Company giving information
about work culture and importance of the job their family member does,
is continuing. Total 116 visits involving 4,536 family members of 659
Associates were conducted. This took the total tally to 423 visits
covering 18,774 family members of 2,893 Associates, till date.
Additionally this year 611 associates were brought under the umbrella
of "Superannuation" benefit. Now the coverage is extended to 3,784
Associates.
Social Involvement
Now, Blood Banks are banking on Jain Irrigation for their requirement
of blood during the crucial times. Once again on demand of the blood
banks, a Blood donation camp was organised wherein 635 units of blood
was collected for various blood banks.
Training
Jain Irrigation took the initiative to meet the academic requirements
of students opting for "Agricultural Engineering" by providing them 16
week training which is being made mandatory for them by the University.
The students were given one month classroom training followed by field
practices on "Sur vey, Design, Installation and Maintenance" of Micro
Irrigation Systems. Then they were exposed to the field operations,
giving them the real experience for choosing their field of career, and
those who chose the field and proved themselves were subsequently
absorbed by the Company converting this mandatory training to a "Win
Win" situation.
The training and development activities for all our Associates
continued within all our locations.
Recruitment and Manpower Strength
A new plant was inaugurated at Alwar to service northern states in
India. The recruitment drive continued throughout the year, looking for
the right people which also included on campus selection for
Engineering Graduates from agriculture field all over the country and
Walk In interviews at various places. The recruitment was done on the
basis of demonstrated and potential ability, compatibility with the
organisational culture, merit, openness and fitness, with son of the
soil empathy. The permanent employee strength of the Company as on
31st March 2012 reached to 7,645 after net addition of 1,141
associates.
14 . Corporate Social Responsibility & Sustainability Report
Creating Shared Value
Corporate Social responsibility is imbibed and part of our corporate
strategy as we work for 'creating shared values' from the inception of
our business. For example, drip irrigation not only solves the water
food- energy issues also but brings prosperity to the farmers. Most of
the farmers we work with are generally having small land holding. These
farmers are based at the bottom of pyramid as per the definition of
classical economics, but to work with them and bring prosperity in
their life is more than CSR to us. Thus, our strategy of CSR is
integrated, interwoven and inter-related to our business for creating
sustainable society of future. The rural development work is carried
out through the group entities Gandhi Research Foundation [GRF] (S. 25
Company under the Companies Act 1956) and Bhavarlal and Kantabai Jain
Multipurpose Foundation [BKJMF] (A registered public charitable trust),
both recognized for benefit of S. 80G of the Income Tax Act, 1961 and
rules made thereunder. During the year under review the above
institutions have been given donations of Rs. 12 Million and Rs. 6 Million
respectively to meet their objectives.
Beside this, our work on CSR is given in the following paragraphs.
Gandhi Research Foundation
As part of our rural development initiative, Gandhi having emerged as
our role model, we decided to preserve for posterity the timeless
ideology of the Father of the Nation. The resulting initiative is the
Gandhi Research Foundation à GRF The "Gandhi Teerth" is established at
Jain Hills. Ex-President of India, Smt. Pratibhatai Patil dedicated it
to humanity in March 2012. Activities of GRF are listed as below:
'Khoj Gandhiji Ki' Museum : A thematic, state-of- art, interactive
multimedia museum conceived and commissioned to disseminate Gandhiji's
life; lessons and ideology, as also the saga of Indian independence
movement.
GIRI (Gandhi International Research Institute) :
The academic arm of GRF which will award Certificate, M. Phil, Diploma,
PhD, Degree, Post-doctoral, Masters, Research, facilitate part-time
research in Gandhian studies. Academic collaboration have already been
signed with the Gujarat Vidyapeeth, Ahmedabad, North Maharashtra
University, Jalgaon and Cytes University, Mexico for the purpose of
conducting joint teaching and research activities from the next
academic session. Scholarships are being provided to needy students.
GRF Think Tank: A consortium of scholars who will deliberate on
contemporary issues. It can independently study and opine on public
policy matters such as peace, ahimsa etc.
Gandhiana: Collection, classification, indexing and synopsizing of
publications by and on Gandhiji.
Gandhi Archives : Preservation of archival publications related to
Gandhiji and the Indian Freedom Struggle.
Gandhinomics: Rural Development/Outreach Programmes based on Gandhian
ideology.
Gandhi Vichar Sanskar Pariksha: GRF conducts Gandhi Sanskar Pariksha
every year. The objective of conducting this examination is to
familiarize school and college student with Gandhian thoughts. The
participating students are provided with study material and books on
Gandhiji at concessional rate. This exam was conducted over 961 centres
in all district of Maharashtra & Belgaum district of Karnataka and more
than 1,50,000 students have participated from different schools and
colleges.
Activities of Anubhuti
It is a matter of pleasure to report that 'Anubhuti' has been doing
well in the co- curricular as well as extracurricular domains such as
dramatics and sports at the inter-school level. The students of
'Anubhuti' also bring out a monthly newsletter named 'Anupam'.
Sustainability Report
Our second Sustainability Report for the reporting year 2011 is ready.
This report covers all the information, process and materiality related
to Economic, Environment and Social aspects of the organization in the
year 2009- 10 and 2010-11. This report covers all the operations in
India, USA, UK, Switzerland and Turkey. The first sustainability report
was published for the year 2008-09 and was limited to Jalgaon
facilities. The present report has covered the stakeholder engagement
process and policy for sustainable future. The organisational support
for the CSR activities for village development, support for development
of sports and sportsmen are also reflected in the upcoming
sustainability report. The activities of 2011-12 and 2012-13, including
NanDanJain facilities will be covered in sustainability report 2013.
The current report 2011 is prepared as per the GRI standard and food
sector supplement is added in this report. This report will follow the
25th Annual Report.
15. Environment, Health and Safety performance
The following steps have been initiated during the year 2011-12
At Plastic Park
- Jain Irrigation Systems Ltd. is re-certified for integrated
management system with integration of ISO 14001, OHSAS 18001 & ISO 9001
Management Systems for its Jalgaon plant and continuation for Hyderabad
& Udumalpet Plants. Initial preparation has been done for
implementation of integrated management system at Alwar plant.
- Rain water harvesting is done from factory open area as well as from
roof top of buildings. Separate pond of 35 Million litres capacity is
made for the same and also rain water from roof top of buildings is
used for recharging of wells through suitable rain water harvesting
structure.
- Certification process for Energy management System & Green House Gas
Management systems has started. Energy audit is also planned for
Jalgaon plants.
- Fire hydrant system at Plastic Park, Jalgaon has been made fully
operational covering additional 6 acres of manufacturing facility.
- Substantial reduction in noise levels (90 to 81 dB) in PVC pipe
production is achieved by introduction of latest technology cutter for
pipe cutting.
- Air Compressor with Variable Frequency drives has increased life of
oil as well as reduction of energy consumption that made them more
environment friendly with less waste generation.
- Emergency preparedness plan is revised with the help of National
Safety Council for better preparedness to meet emergency situations.
More details about energy and resource conservation are given in Para
20 of the report.
16. Internal Controls and Management Information Systems
ERP
The Company has already implemented the transition to a single software
platform. By consolidating IT systems, SAP has enabled simplified and
standardized work processes across all facets of Company's' complex and
diversified businesses, while enhancing the Company's customer service
culture and driving operating efficiencies.
Internal Controls
SAP implementation allowed a number of strategies to implement internal
control in the business application through process mapping,
segregation of duties, authorisations. Independent of the SAP
functionality and control check, your Company is proactively
identifying the areas for further improvement which shall remain an
ongoing process.
Future
The Company has plan to integrate its IT infrastructure by rolling out
SAP at foreign subsidiaries to further streamline Manufacturing, Supply
Chain, local and global reporting, analysis in a common enterprise wide
format. It will provide better collaboration with our worldwide units,
transparency and efficiency for global operations.
17. Fixed Deposits
The Company, during the year under review, has not accepted nor renewed
any deposits from public, under the Companies (Acceptance of Deposits)
Rules, 1975. The Company had no unclaimed / overdue deposits as on
31st March, 2012.
18. Auditors
The Auditors, M/s. Haribhakti and Company, Chartered Accountants,
Mumbai have furnished a Certificate under Section 224(1 B) of the
Companies Act, 1956 that their proposed re appointment, if made, will
be in accordance with the said provision of the Companies Act, 1956.
The Audit Committee has recommended that M/s. Haribhakti and Company, a
firm of Chartered Accountants, Mumbai be reappointed as Statutory
Auditors. The Shareholders may reappoint the Statutory Auditors as per
AGM Notice attached separately.
19.Particulars of Employees
As per provisions of Section 217 (2A) of the Companies Act, 1956 only
six of the persons in employment of the Company have drawn remuneration
in excess of Rs. 500,000/- per month, during the year under review or
part thereof as per details in the Annexure to this report.
20.Particulars of energy conservation, technology absorption, research
and development, foreign exchange earnings and outgo.
A) Energy Conservation
Plastic Park
Installation of two chilling plants of capacity 200 Ton of TR each in
drip line has resulted in substantial saving of water through
prevention of evaporation besides an energy saving of 8% compared to
old system.
Changes made in the concentration of blend batches in PVC Sheet
resulted in reduction of energy consumption of 43% in pigment
preparation.
- Auto feeding system of material established in various machines has
avoided manual loading operation, enhancing safety of operation. 15
silos for raw material storage are installed for drip tube plant. This
has substantially reduced generation of packing material wastage.
- Additional machines of runner less Moulds are installed for inline
emitters which has totally eliminated wastage generation.
- Plastic Park uses solar pumps for its entire demo operations and
development works, promotes renewable energy uses.
- Tree plantation is a regular activity and the 50% of the factory area
is having green cover of trees and lawn area. The tree plantation is
also done outside the factory area on road side.
- New Generation chilling plants in dripline manufacturing unit are
more environmental friendly eliminating usage of F22, an Ozone
depleting gas.
- Installation of 132 KV substation directly form national grid has
eliminated the power interruptions thereby reducing waste.
- Continued efforts of installation of Variable Frequency drives,
servomotors and rationalization of pumps and various other measures, in
all the plastic divisions has achieved a total energy saving of
10,99,000 Kwh during 2011-12.
Food Park
For improving the existing processes of energy / resource conservation
and quality of existing products, following have been carried out
- Improvement in the microbiology quality of Onion Products.
- Improvement in ripening of Mango with the use of hot water system.
- Improvement of color of Onion products.
- By-products made out of waste generated.
- Solid waste being used to generate 1.7 megawatt of electricity.
- Digested solid waste after biogas generation is being sold as soil
conditioner.
- Dried Mango seeds being used as fuel in boiler.
Energy Park
- Energy saving is achieved by replacement of conventional metal halide
fittings with electronic ballast 4x55 Watt Compact Fluorescent tube
light fittings. This will reduce the power consumption by 10,000 KWH
per year.
We have taken various measures for energy conservation at Green Energy
Division.
- We have replaced all the mercury lamps by energy efficient CFL lamp.
- As a step forward, we have started replacing the remaining
fluorescent tubes & lamps with LED luminaries in our different
establishments
- Anubhuti Green Energy Project (BIOGAS): In line with Anubhuti
SchoolRs.s Green philosophy we have commissioned 120 kW biogas plant as
Green Energy Project at Anubhuti school campus. The biogas generation
in this plant is approximately 2000 m3/day. Some portion of biogas is
utilized for cooking daily meals of Anubhuti students and staff at
School Canteen. The remaining portion of biogas is utilized for the
generation of electricity. The generated electricity is utilized in
Anubhuti School campus. Also, 2 MT/day Bio-fertilizer is produced from
this plant.
B) Resource Conservation Plastic Park
Installation of material storage Silos: Procurement of bulk packed
material has resulted in substantial reduction 40 small bags per ton of
material sourced. During Financial Year 2011-12 the Company has
reduced generation of 6,26,010 small Polyethylene bags, giving benefits
of eliminating material transportation in house.
In sprinkler products, the T-Joints, Elbow joint & service saddles are
on-designed to single components, thereby eliminating three separately
molded components, three molding operations and three assembly welding
process.
Introduction of Excel and Turbo line, Super series Emitter's has
yielded polymer saving in product for the same amount of water
discharge.
- In house development of blowing agent in PVC Sheet has eliminated
import of 150 tons of chemical per year saving foreign exchange.
- Efforts towards addition of high speed all electric injection molding
machines, rationalization of pumps and compressors has yielded
substantial saving in energy, polymer material and consumables besides
conservation of water.
Food Park
Biochemical Profile of various Agro-based wastes:
Physical, Chemical and Proximate including macro & micro nutrient
analysis of 24 various Agro based waste will be carried out. The
expected outcome;
- Determination of concentration of organics in a various waste that
can be an-aerobicaly converted to CH4.
- Evaluate potential efficiency of anaerobic process for a specific
waste
- Measure residual organic material amenable to further anaerobic
treatment.
- Standardized and optimized protocol for isolation of Methanogens.
- Identification of isolated methanogenic in vivo / in vitro cultures
- Library of Methanogenic microbes.
- Library of Non-Methanogenic microbes.
- Substrate specific microbial consortium will be available for
enhancement of methane content in biogas.
- Developed inoculums for anaerobic digestion of complex Organic
wastes.
- Biogas having more than 60% of absolute Methane.
- Combinations of Waste Ratios with co-digestion substrates for biogas
production.
Energy Park
- Owing to the 132 KV,50MWsubstation commissioning and integration with
the National Grid, the frequency of power failures has substantially
reduced, giving benefits of elimination of waste generation due to
power failure and recycling need.
C) Technology Absorption
Plastic Park
- In Drip line introduction of Plant Management System for analysis of
historical data, data logging has improved functionality of general
operations of the line.
- Manufacturing Technology of "Logos Filters" is taken from USA, "M/s.
Claude Laval Incorporation" for production of state of the art filters
in India.
- Manufacturing technology of sand separators under license from "M/s.
Claude Laval Incorporation" USA, has been successfully absorbed for
state of the art filter manufacture.
- Upgraded version of plant management system has been installed in the
Drip line plant, for all machines which has resulted in improved
functionality and productivity.
Food Park
In Food Processing, we undertake innovation in the following 3
categories of activities:
- New product development.
- Improving existing processes & quality of existing products.
- By-products can be made out of waste generated.
Under new product development, the Company has identified 5 focus
fruits and vegetables. Following new products have been developed and
introduced to customers
- Fried Onions;
- Clarified Juices and Concentrate of Mango, Banana, Guava and Papaya;
- Blended puree products;
- Sweetened pulps and dehydrated products for the retail market.
Energy Park
- Solar application R&D equipped with advanced instruments required for
electronics R&D has been fully absorbed/ developed.
- We have introduced lacqure coating technique for electronic PCBs
manufactured by us. These PCBs are used in the Solar Appliances
manufactured by us. This coating is done on both sides of the PCB to
ensure no atmospheric contact of tracks & components. This will
eliminate / significantly reduce oxidation & ensure longer life of the
electronic components as well as the Solar Appliances.
- Belt Press Filter: A belt press filter of 15 m3/hr capacity has been
procured and installed for the efficient solid liquid separation of
digested slurry from biogas power plant. The recovered solid fraction
is utilized for making Bio-fertilizer while the liquid fraction is
utilized for mixing with raw material for biogas power plant and for
irrigation purpose in Company premises.
- Developed Solar Nano Pumps for Agri field as well as household
application. This new product is a perennial energy saving in
agriculture as well as household applications.
Agri Park & Tissue Culture
At R&D laboratory centre few new sophisticated instruments viz.
Real-time Polymerase Chain Reaction (PCR), ultra low temperature fridge
were added.
D) Research and Development Plastic Park
- CPVC Pipe recipe developed. Trials are conducted and tooling is
obtained for application of hot water CPVC Pipes with more than 110ðC
Vicate softening temperature.
- Bi-Pipe developed in HDPE has opened new era for Geo Thermal
Applications.
- New Sprinkler outlet assembly developed, facilitates direct supply to
the sprinkler stand unit using the hollow leg of stand. This is more
farmer friendly and reduced number of components and given easy
mobility.
- During FY 2011-12 nearly 190 new elements are developed. This has
extended the range of existing products and added new treatment for
some products.
- Continuing the efforts towards higher productivity 7 high precision
and (high speed) low cycle time Moulds were developed amounting
increase of productivity by 1200%.
- Drip Line : Design and development of Excel emitters has eliminated
the marks on thin wall tubing, thereby improving the quality of
product.
- New products developed, Turbo Line Super series and Excel have
improved filtration, clogging resistance and reduced the coefficient of
variation.
- Disc elements in filtration system are indigenously developed thereby
elimination of import.
- Range of Air Release Valves is extended to 2".
- New design filter candle is developed using hot runner moulding
process has improved the quality of production.
- Product range of PVC Sheets extended, by introducing 4 new (Color)
products to cater for domestic market.
- Disc elements in filtration system are indigenously developed thereby
eliminating the need for import.
Food Park
- Isolation and characterization (Microbial, biochemical & molecular)
of Methanogens from available in house waste sources.
- Isolation and characterization (Microbial, biochemical & molecular)
of Non-Methanogens form available in house waste sources.
- Preparation of library of isolated cultures.
- Study of substrate specificity with Methanogens.
- Augmentation of methane with isolated culture.
- Optimization of HRT[Hydraulic Retention Time] at pilot scale.
- Optimization of pH at pilot scale.
- 'BMP', Biochemical Methane Potential of various substrates.
- Biochemical Profile of various Agro-based wastes
Isolation and characterization (Microbial, biochemical & molecular) of
Methanogens from available in house waste sources:
i. In the anaerobic digestion, consortium of bacteria includes
aero-tolerant (facultative) anaerobes and strict (obligate) anaerobes.
As operational conditions change, concomitantly bacterial species and
population also change. These changes are responsible for changes in
the types and quantities of substrates which in turn significantly
influence the activity of methane- forming bacteria and overall
efficiency of the digestion.
ii. Till date 5 methanogenic strains have been isolated in pure form
from anaerobic digestion of MP, BP, Pomegranate Shell and PMC (lab
scale). Out of 5, two are from PMC and one each from others.
Isolation and characterization (Microbial, biochemical & molecular) of
Non-Methanogens form available in house waste sources:
i. 10 non-methanogenic strains supportive to Methanogens have been
isolated in pure form.
ii. Out of ten, 1 was sent outside lab and reported as
Propionebacterium acnes. We have submitted the sequence of this isolate
to NCBI (National Centre for Biotechnology Information) and they have
accepted this as NEW GENOME SEQUENCE (Accession No. JN937118).
Preparation of library of isolated cultures:
A thorough research will be conducted on molecular characterization of
efficient Methanogens & Non Methanogens which after 16s RNA profiling
will be included in Library for further research.
Study of substrate specifcity with Methanogens:
Till date Methanogens are known to utilize single 'C carbon compounds
but we are doing experiments to see Utilization of other C carbon
compounds like Tri Methyl Amine Methanol Acetate , Di Methyl Sulphide,
H2CO2 etc..to check substrate specificity.
Augmentation of methane with isolated culture:
Methanogens which are highly efficient in terms of Methane Production
will be utilized to enhance absolute Methane.
Optimization of HRT[Hydraulic Retention Time] at pilot scale:
For Optimization of HRT various experiments will be conducted for
15,18,20 & 22 Days to establish optimum HRT for maximum Biogas
production with VFA utilization.
Optimization of pH at pilot scale:
For Optimization of pH various experiments will be conducted for pH
5,5.5,6 &6.5 to establish optimum pH for maximum VFA production.
'BMP', Biochemical Methane Potential of various substrates:
The Methane Potential is the volume of methane biogas produced during
anaerobic degradation in the presence of bacteria of a sample initially
introduced, expressed under Normal conditions of Temperature and
Pressure, in all 24 different agro based substrate BMP will be
determined.
Energy Park
- We have improved our solar energy based luminaries for more
efficiency and reliability by operations from micro controller.
- The development of 600W, 1800W and 4000W BLDC Solar pump controller
with data logger is completed. Production line is set for manufacturing
these controllers in house.
- The development of data logger that will provide information on cell
phone by SMS to user as well as to Quality Assurance department.
- Development of Off Grid solar power packs has been started.
- Developed Solar Nano pumps for agri field as well as household
application. This new product is a perennial energy saving in
agriculture as well as household applications.
- Jain Solar Photovoltaic Modules were developed as per International
Standards. National & International Testing Laboratories like
Underwriter Laboratories Inc. USA, have tested these modules in their
facilities and certified.
Energy Monitoring System For Solar Power Packs :
This is a standalone system designed to monitor all the performance
parameters of Solar power packs & send data to Jain server through
GPRS. Also data can be downloaded in to pen drive in Excel format & can
be viewed on local PC.
USB Data Logger For Solar Street Light Monitoring: This system is
designed to monitor performance parameters of installed Solar Street
Lights. The system is useful to determine the charging-discharging
profile of battery and ON- OFF time of Solar Street Light. The data can
be downloaded into the pen drive in Excel format.
LED luminaries: Different LED luminaries such as garden lights, single
& dual LED path lights, dome lights, down lights, LED ceiling lights,
tube lights and wall washers were developed. The main objective was to
provide energy efficient lighting solutions.
Pilot Scale R&D plant: A 2,000 litres capacity pilot scale R&D plant
has been designed and commissioned at 1.7 MW biogas Power Plant site.
It is small replica prototype of 1.7 MW Plant. The main purpose of this
pilot scale plant is to study feasibility of various substrates for
biogas generation. Also, to study the various combinations of available
substrates for optimizing biogas generation in existing power plant.
Agri Park & Tissue Culture
- In tissue Culture a new protocol has been developed for the
production of citrus which we intend to process down the line. This
will be a major event for us as we aim to produce elite planting
material which can be ultimately given to growers on contract. This
will help us in obtaining quality produce for processing.
- Isolation of methane producing micro organisms (methanogens) : This
lab has isolated one of the methanogenic strain (Methanosarcina
mazzie). As on date, world-wide, only 18 strains of methanogenic
bacteria have been identified and only two are present in India. We
have one of them and the search for the other is in progress. Five
non-methogenic strains which are in association with methaongens have
been isolated in pure form and we have sent them for 16s RNA profiling.
Till date, 24 substrates complete with biochemical profile including
biochemical methane potential (BMP) have been completed.
- Studies on Erwinia : Our microbiology lab has been successful in
identifying and characterizing soft rot causing bacteria in tissue
culture banana which is one of the main cause of mortality of TC banana
plants (Erwinina chrysenthami).
- Study of molecular mechanism of flowering: Banana improvement through
conventional means is very laborious and time consuming and with the
intervention of modern bio-technological approaches, this task becomes
relatively easier, as we know its crop biology. We have been successful
in cloning the FT genes such as FT1, and Terminal Flower (TFL).
Functional expression studies are in progress to ascertain as to who
among these are crucial for flowering.
- Banana : Year 2011-12 was a remarkable and revolutionary year for
Jain Tissue Culture Banana production centre, one for selling highest
tissue culture banana saplings in the world i.e. 30.05 million against
the target of 30.0 million saplings and second for introducing a new
concept of micro-propagation that offers number of advantages not only
for organization but also to the farmers who are direct customers of
the product. It is worth mentioning here that the research team has
completed their commercial trials with plants produced through new
technology that offered farmer a better survival of the saplings after
transplantation in the field and almost 20-30% more yield than the
earlier planting material. As a result the organization has received
unlimited enquiries for the saplings produced through new technology
and tremendous response for the booking of the saplings well in
advance. The saplings produced with new technology are tolerant to
abiotic stresses as a result farmer can now plant the sapling even in
the summer (off-season) which was not an ideal season for banana
plantation earlier. The off-season plantation offers farmer better
returns to its produce because of the unavailability of the fruits in
the market and also help to save water minimum by 30%.
- The new technology offers advantages of maximum utilization of man,
machine and space to the organization a critical factor earlier because
of the limitation of the technology and seasonal demand of the product.
This allows organization to set a sale target of 60.0 million saplings
for the year 2012-13 which will create its own record in banana tissue
culture business. The technology will help to reduce the cost of
production and will allow organization to enhance the production.
Considering the future plan of expansion, the organization has started
mechanizing the activities where in the first phase the robotic
transplanting lines are introduced for post laboratory operations that
would be the first of its kind in the country for tissue culture
business. The mechanization will allow saving tremendous manpower
along with improvement in the quality of the product because of machine
control.
- Pomegranate : Jain Tissue Culture is popular in farming community for
Banana. However, since last couple of years the farmers from other
group of crops are also availing the advantages of this technology that
include Pomegranate. This was the fifth year after commercializing
tissue culture Pomegranate saplings. The activity which was initiated
by selling 0.24 million plants in the year 2007-08 is supposed to touch
to 5.5 million by the year 2012-13. Farmers are excited with the
performance of the Jain Tissue Culture Pomegranate saplings. They
receive disease free saplings that they noticed further in the field
too and obtained more yield against the conventional planting material.
- Strawberry : Strawberry is one among the important commercial crop
even though it is being cultivated on very small area in the country.
Presently, the planting material is imported on regular basis in most
parts of the country where strawberry is grown. The research team of
the Company is working on number of crops for propagating it through
tissue culture that are commercially important, strawberry is one among
them. The progress of the research work indicates that strawberry would
be added in commercial propagation in next couple of years.
R & D Expenditure (Rs. in Million)
Sr.
Particulars 2011-12 2010-11
No.
a. Capital Expenditure 269.51 197.38
b. Revenue Expenditure 180.61 102.88
Total 450.12 300.26
c. % of Revenue 1.19% 0.90%
21. Acknowledgement
The Directors take this opportunity to place on record their
appreciation of whole hearted support received from all stakeholders,
customers and the various departments of Central and State Governments,
Financial Institutions, Bankers, the Dealers and Suppliers of the
Company. The Directors wish to place on record their sense of
appreciation for the devoted services of all the associates of the
Company.
by order of the Board
Sd/-
Anil B. Jain
Mumbai, 14 August 2012 Managing Director
Mar 31, 2011
To the members,
The Directors present their report on the financial performance,
business and operations of the Company for the year ended 31st March
2011.
1. Financial Highlights Rs. in Million (except EPS)
Particulars 2010-11 2009-10
Domestic Sales 27,349 21,735
Export Sales & Services 5,158 5,209
Other Operating Income 802 285
Sales and Operating Income 33,309 27,229
Operating Profit 7,594 6,647
Interest and Finance Charges 2,364 1,943
Depreciation and Amortisation 834 686
Amounts written off and provisions 121 96
Profit before taxation &
exceptional items 4,275 3,922
Provision for
Tax
Deferred Tax (Asset)/Liability 200 317
Current Tax-Provision 909 670
MAT Credit 201 232
Profit for the year before Prior
Period Expenses 2,965 2,703
Prior Period Items- Income/ (Expenses) -12 9
Profit for the year 2,953 2712
Profit b/f from the previous year 4,449 2,851
Balance available for appropriation 7,402 5,563
Out of which the
Directors have appropriated as under;
Proposed Dividend 386 357
Dividend Tax 64 61
General Reserve 300 271
Transfer to CRR 23 425
Balance to be carried forward 6,629 4,449
Earnings Per Share
Basic 7.75 7.17
Diluted 7.74 7.15
2. Operations
The net sales have increased by 22.3% on yoy basis, since exports
remained flat at Rs. 5,158 Mn while the domestic sales improved by an
impressive 25.6% at Rs.27,349 Mn backed by growth in MIS/SIS (32%), Agro
processing (10%) and Pipes(9%). The MIS/SIS growth was primarily due to
increased retail sales in States like Maharashtra, Andhra Pradesh,
Gujarat, and Punjab and project sales in Karnataka, & Rajasthan. The
growth in Agro processing sales were mainly on account of higher demand
for mango puree in our European & Middle East markets while growth in
Domestic business was on account of continuing robust off-take from MNC
beverage company. The pipe growth was due to increased retail business
in Maharashtra, Madhya Pradesh, Karnataka, Gujarat and Rajasthan while
the Duct distribution, Gas distribution & water distribution pipes, all
three segments contributed to the increased domestic sales of the PE
pipes.
The operating income includes Rs.554.03 Mn (Rs.142.39 related to 2009-10)
due from Government of Maharashtra under eligibility certificate issued
under the Industrial Promotion Scheme from DIC, GoM. The EC is valid
for a period of 7 years from 30th September 2009 or till the amount of
benefit gets exhausted, whichever is earlier.
Due to changes in foreign currency rates, the notional gain was lower
by over 85% yoy basis at Rs.102.1 Mn. Even though the tighter monetary
regime resulted in an increase of Rs.420 Mn. in finance charges on
absolute basis, the impact on cost of sales was flat at little over 7%.
The profit for the year was at Rs.2965 Mn. (as against Rs.2703 Mn. last
year), an increase of 10%.
3. Dividend Rs. in Million
Proposed Dividend on Preference Shares (4%) 0.23
Dividend Tax-Preference Shares 0.04
Proposed Dividend on Equity Shares 385.89
(50%) Rs. 1/- per Share
Dividend Tax- Equity Shares 64.07
Besides small Preference Dividend payable for partial year (3 months)
as above; the Directors propose to the Shareholders a Dividend of Rs.1
per share, on Ordinary Equity Shares of Rs.2 each involving an out go of
Rs.385.89 Mn. to all eligible Shareholders and Rs.64.07 Mn. as Dividend
Distribution Tax for the year ended 31st March 2011.
4. Sub Division of Equity Shares, Preferential Issue, ESOP related
Shares allotment, DVR's
As the Members may be aware the Company had announced a sub division of
Equity Shares of Rs.10 each into Ordinary Equity Shares of Rs.2 each on 9th
August 2010. The sub division became effective on 1st November 2010 and
the new ISIN number for Equity Shares is INE 175A01038.
In terms of the Shareholder's approval of 9th March 2011, the Board of
Directors have allotted on a preferential basis as per applicable SEBI
(ICDR) Guidelines 2009 6.1 Mn Equity Warrants of Rs.228.15 each
aggregating to Rs.1,391.72 Mn against deposit of Rs. 347.93 Mn (being 25%
of issue price) by the select Individuals and entities of the
Promoter's Group. The Equity Warrants carry an option for request for
allotment of Equity Shares of Rs.2 each for cash at a premium of Rs.226.15
each by paying the balance 75% money anytime within 24th September
2012.
During the year under review Associates holding ESOP's equivalent to
45,38,000 opted to exercise the option attached to the their options
and applied for 4,538,000 Equity Shares of Rs.2 each at an exercise price
of Rs. 61.55 each (2,250 Equity Shares), Rs.82.69 each (2,090,425 Equity
Shares) and Rs.113.60 each (2,445,325 Equity Shares). This resulted in an
increase in paid up capital by Rs.9.08 Mn and securities premium account
by Rs.441.71 Mn.
While after 31st March 2011 Associates holding ESOP's dividend
equivalent to 161,625 opted to exercise the option attached to the
their ESOP's and applied for 161,625 Equity Shares of Rs.2 each at an
exercise price of Rs.61.55 each (1,500 Equity Shares), Rs.82.69 each
(134,200 Equity Shares) and Rs.113.60 each (25,925 Equity Shares). This
resulted in an increase in paid up capital by Rs.0.32Mn and securities
premium account by Rs.13.81 Mn.
The proceeds of deposit amount of Equity Warrants and the Equity Shares
allotted against ESOP options exercised have augmented the long term
resource base of the Company and hence the Directors confirm having
used the funds as per the objects of the said issues.
On the 27th January 2011, the Board Of Directors announced the decision
to capitalize reserves and allot Equity Shares of Rs.2 each with
Differential Voting Rights (DVR's) and as per requirements of Companies
(Passing of Resolutions by Postal ballot) Rules, 2001, the members have
passed with requisite majority the resolutions to amend the Capital
Clause in the Articles of Association to enable the Company to issue
such DVR Equity Shares. Since then the Company has applied on 15th
February 2011 through the designated Stock Exchange (i.e. The Bombay
Stock Exchange,) the necessary exemption under the under sub-rule (7)
of rule 19 of Securities Contracts (Regulation) Rules, 1957 for
relaxing strict enforcement of clauses (b) to sub-rule(2) of Rule 19
thereof in respect of proposed Bonus Issue of DVR Equity Shares. The
exemption applied for above is still awaited and Company shall fix a
"Record Date" soon after the SEBI exemption is received and the SE's
give "in Principle" permission for listing of the DVR bonus Shares.
Thereafter the process of allotment and issue of DVR Equity Shares
shall be completed expeditiously.
5. Resource mobilization and capacity expansion
During the year under review, the Company has raised from international
financial markets / institutional lenders, further Buyers Credit/
Foreign Currency unsecured Loans based on LIBOR linked rate at
competitive pricing. Total amount sanctioned and disbursed is CHF
17.75Mn (equivalent to Rs.826.5 Mn). The loan amounts are being used by
the Company for the expansion and modernization activities in MIS/ SIS
business. The Company has invested an amount of Rs.3,594 Mn on capital
expenditure to increase the capacity in various divisions. An amount of
Rs.1,962 Mn has been spent on capital expenditure for the MIS/SIS
division by increasing the capacity of 53,060 MTPA. Rs.321 Mn has been
spent on capital expenditure for the piping segment adding in excess of
33,645 MTPA in the segment. Rs.647Mn has been spent on capital
expenditure for the Agro processed division. An amount of Rs.15 Mn has
been spent on capital expenditure for Tissue Culture segment to
increase the capacity by 5 Mn plantlets. The Company has spent an
amount of Rs.141 Mn in Green Energy/Solar business while it has started a
Solar PV manufacturing facility at an initial cost of Rs.122 Mn during
the year under review. An amount of Rs.385 Mn was spent towards
strengthening the common corporate service infrastructure.
6. Significant Awards, Accolades & recognitions
The Company has received several awards on International and National,
State level during the year under review, however significant amongst
them are:
- IFC's (partofWorld BankGroup) Client Leadership Award for "pioneering
work to promote sustainable agriculture and raise farmers' incomes
through the efficient use of water, energy and fertilisers"
- The Financial Times London and Arcelor Mittal Boldness in Business
Award in Environment category for 2010 for "For pioneering drip
irrigation in India, it worked tirelessly and drove the growth of this
simple yet highly effective technology. It multiplied yields at
considerably lower water usage. Wastelands could now be cultivated and
greened. More Crop Per Drop made real difference to environment. Jain
Irrigation went beyond offsetting its carbon footprint and achieved
sustainability on a more fundamental level".
- Recently, the Company was granted US Patent 7963569 titled Ãlocking
pipe joint and method of making the same'.
onion for Jain Irrigation Systems Limited in 1996. This acquisition
gives JISL a possibility of addition of many more products in its Food
Division product range. It brings JISL one step closer to the market.
The Company received a prestigious Food Manufacturing Excellence Award
after acquisition. SQFL has started Juice Trading Division for which
Juices are procured from different parts of the world.
Harvard visit of farmers
Two small but successful farmers who started small time but are shining
examples of how technology & innovative cultivation methods transformed
lives of farmers in the country were part of an invited delegation at
Harvard Business School. The farmers made a full scale presentation the
delegates at Harvard School and also faced some questions-answers from
those present. These farmers have used your Company's product &
technology and are proud customers.
THE Machines acquires PRO-TOOL AG
Recently, THE Machines, a multi-generation subsidiary of the Company
has acquired 75% stake in Pro-Tool Ag, Wynau, Switzerland, a Swiss
Corporation active in Plastic Injection Mould manufacturing,
engineering and tool manufacturing. The Company has ability to acquire
balance 25% based on prefixed valuation of the Company in next 10
years. By this acquisition the engineering capabilities of the group
get further enhanced specially in the field of plastic mould making.
8. Other strategic and major developments post March 2011
We have been engaged in solar business for more than 17 years and we
believe solar energy systems and products are a large potential
business. The Government of India, Ministry of Non Conventional Energy
has also launched the Solar Mission under which it has targeted:
- to create an enabling policy framework for deployment of 20,000 MW of
solar power by the year 2022;
- to achieve 15 million square meters of solar thermal collector area
by 2017 and 20 million square meters by 2022;
- to deploy 20 million solar lighting systems for rural areas by 2022;
and
- to achieve these objectives through the private sector making focused
efforts in the solar thermal and energy areas.
Our solar division had income of Rs.358.5 million for the year ended
March 31, 2011. As a small division, we believe it could not get the
desired attention of a business having huge potential. We aim to focus
on this business as a separate and standalone entity and to exploit
non-conventional sources of energy mainly through "solar systems
applications". In Fy 2012 we will transfer the assets of our solar
business to a 100% owned Indian subsidiary. Our solar business
comprises of manufacturing, installation, and operation of solar water
heating systems, solar photovoltaic appliances and solar pumps. We
believe that consolidating this business within a single subsidiary
will help us focus on this business, which we believe will have strong
growth in the future.
Company has not yet launched the proposed issue of 331 Mn Equity shares
of Rs.2 each under Qualified Institutional Placement / FCCB/ EDR/ GDR due
to uncertain market conditions. The Board shall take decision at an
appropriate time and keep the Shareholders informed through websites of
BSE/ NSE for any development on the subject.
In it's pursuit to become a global leader around its core domain of
agri-business, your Company has acquired a rich pool of tacit and
direct knowledge on the customer base (small farmers) through its
strong dealer network. One of the key observations that Company has
developed over its long establishment period is the inadequacy of
and/or untimely credit that the small farmer segment is delivered for
his agricultural needs. In this context, your Company has promoted a
NBFC namely Sustainable Agro Commercial Finance Limited - with the
overall objective of serving the small farmer and rural constituency in
bridging the current gap. This will help the Company to reduce
receivables in the balance sheet and significantly improve working
capital cycle for the Micro Irrigation business. Company has made an
application to Reserve Bank of India for license. IFC (World Bank
Group) has agreed to become 10% share holder of proposed NBFC.
In Karnataka new Micro Irrigation Corporation namely Anthara Gange
Sukshama Niravari Nigam has been launched by State Government to
promote the spread of MIS/SIS in the state. After Andhra Pradesh,
Gujarat and Tamil Nadu this is the fourth state to have started a
special corporation for spread of MIS/SIS in state with central
assistance. This will help to channelize the funds systematically into
the development of MIS/SIS in the Karnataka State and the potential to
cover larger areas under the MIS/SIS is enhanced with this recent
development.
At the new proposed location in Alwar, Rajasthan the Company has
commenced activities to install following capacities for products as
under:
Product Capacity per annum
MIS 17,200 MT
Pipes 42,200 MT
Fittings (GH/PH/Nur./Shade H.) 16 lac sq. mtr.
Tissue Culture 50 lac plants
Dehydrated Vegetable 3,000 MT
Solar 10 lac nos.
and hope to commence commercial operations for plastics business at
above location from October 2011 onwards. The plant will generally
serve the Northern Indian market which has exhibited a large growth
potential.
9. The operations of subsidiaries
The Mauritius based direct subsidiary of the Company has earned an
income of $ 116,066 and made a net loss of $ 810,872. Summarised
Balance Sheet and the Income statement of the said subsidiary is
available elsewhere in the Annual Report. The resources of the
subsidiary have been further strengthened by infusion of $8.5 Mn. as
loan during the year under review. The Netherlands based direct
subsidiary of the Company has earned an income of $939,000 and made a
net loss of $388,047. Summarised Balance Sheet and the Income statement
of the said subsidiary is available elsewhere in the Annual Report. The
resources of the subsidiary have been further strengthened by infusion
of $1.5Mn as Equity Capital/Share premium and loan of $2 Mn during the
year under review.
Other Subsidiaries
Information on operations of other subsidiaries including new
acquisitions has been covered in Management Discussion and Analysis in
this report.
10. Employee Stock Option Plan (ESOP)
The implementation of Employees Stock Options and Shares Plan, 2005
(ESOP-2005) has continued during the year under review. Thus four lots
are now issued to eligible employees including whole time directors,
and key management personnel. No employee has been issued options
entitling such person to subscribe to more than 1% of Equity Share
capital of the Company.
11. Directors retiring and their background
Retiring Directors
Shri. D.R. Mehta and Shri. Ghanshyam Dass are retiring by rotation and
being eligible offer themselves for reappointment at the ensuing AGM.
Dr.Arun Kumar Jain, Additional Director retires at the ensuing AGM.
The Company has received a proposal to appoint him as Director liable
to retire by rotation and it shall be placed before the meeting for
Members decision on appointment.
On 5th October 2010 of Shri. A.R. Barwe the then Chairman of Audit
Committee and an Independent Director on Board of the Company died. He
had been with the Company as a Director since August 2002 and had
played important part as Audit Committee Chairman in difficult times in
the early part of decade. The Board of Directors wish to place on
record their deep appreciation of the invaluable services rendered by
him as an Independent Director and Chairman of the Audit Committee of
the Company for a period of above 8 years.
In terms of the Corporate governance requirements, given below are the
brief resume of each of the retiring directors:
Shri D.R. Mehta was appointed on 26th December 2007. He joined Indian
Administrative Service in 1961 and held important positions in the
Govt. of Rajasthan and later in Govt. of India. He was the Chairman of
Securities and Exchange Board of India (SEBI), an apex regulatory body
that deals with the regulation and development of the capital market in
India. He has been credited with transforming the Capital Market in
India into a modern, efficient, safe, vibrant and a very investor
friendly one. His prior prestigious postings include the Deputy
Governor of Reserve Bank of India, Director General of Foreign Trade,
Ministry of Commerce, and Additional Secretary, Banking, Ministry of
Finance. Born in 1937, he is a graduate of Arts and Law from Rajasthan
University. He also studied at Royal Institute of Public
Administration, London and Alfred Sloan School of Management, MIT,
Boston. There is another side to this sterling personality-human side.
A man of compassion, he set up the Bhagwan Mahavir Viklang Sahayata
Samiti in 1975. He was conferred the Padma Bhushan civilian award on
5th May 2008 for Social sector Work. Shri. Ghanshyam Dass was
appointed on 25th August 2009. He has had an outstanding career in
domestic, international banking and Capital Markets for over 32 years,
during which he developed a firm understanding of the complexities of
international markets. He is thoroughly familiar with the regulatory
and business environment in USA, European Union, South East Asia, The
Middle East, India and other major money-center locations. Mr. Dass is
an Advisor to Intel Capital, Task Force, Founder Member Association of
Outsourcing Professionals (AOP), Member Academic Council à Union Bank
School of Management, Member of the CII National Council on Corporate
Governance and Regulatory Framework and CII National Committee on
Capital Markets and Government Nominee on the Governing Council of The
Institute of Company Secretaries of India (ICSI). Mr. Dass is a member
of Brickwork Ratings Committee (A Credit Rating Agency) and Vice
President Karnataka Athletics Association.
Dr. Arun Kumar Jain was appointed as an Additional Director on 4th
April 2011 He is one of India's best known strategy scholars and
author. Widely traveled, he has taught at leading Universities in USA,
UK, Greece, France, Germany, and Singapore. He holds honorary chairs as
Distinguished Professor of Corporate Governance and Strategy at SP Jain
Center for Management, Singapore & Dubai, and Affiliated Professor of
Strategy, International Business and Corporate Governance at EM
Strasbourg School of Business, Strasbourg (France's largest University)
and previously Research Chair Professor at German Graduate School of
Business and Law (Germany) and Chairman & President of Center for
Accelerated Learning, Innovation, and Competitiveness (Germany). His
research has been published in international journals including Harvard
Business Review. All his books on general management, viz. Competitive
Excellence; Corporate Excellence; and Managing Global Competition have
received India's Best Book Awards. His two textbooks, Crafting and
Executing Strategy (running in 16th edition) and International Business
(in 6th edition) are standard MBA texts in India and abroad.
Dr. Jain is a gold-medalist mechanical engineer (having received the
ÃAll-Round Best Student' award), Ph.D. from Indian Institute of
Management-Ahmedabad (having received IFCI Outstanding Doctoral
Research Award), and an alumnus of IFC-World Bank. Before joining full-
time Indian Institute of ManagementÃLucknow (India), he was a faculty
at IIM-Bangalore. Professor Jain has presented delivered keynotes at
Council of Europe (Strasbourg), Global Corporate Governance Forum at
Washington, World Bank/IFC, Bundesbank (Germany), Global Forum for
International Investment (Paris), OECD at Paris and Copenhagen, UNCTAD,
MITI (Japan), European Union (Brussels), Commonwealth Secretariat (UK),
India-Germany Business Forum (Germany), etc.
12. Director's Responsibility Statement
In accordance with the provisions of Section 217(2AA) of the Companies
Act, 1956, your Directors state that:
i) in the preparation of the annual accounts, the applicable accounting
standards have been followed except, to the extent indicated in notes;
ii) the accounting policies are selected and applied consistently and
are reasonable and prudent judgments and estimates were made so as to
give a true and fair view of the state of affairs of the Company as at
31st March, 2011, and, of the profit of the Company for the year ended
31st March, 2011;
iii) proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of
Companies Act,1956, for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;
iv) The Directors have prepared the annual accounts for the financial
year ending 31st March, 2011 on a Ãgoing concern basis'.
13.Material Developments in Human Resource
i] Associate Engagement
Apart from the overall development of our associates, the Company is
adopting various HR initiatives for bringing in the feel of
"organization as a large family" amongst not only the associates but
also the families of the associates in a systematic manner.
Pilgrim tours were undertaken for the associates above the age of 45
and their parents and grandparents. Total 7 pilgrim tours of 10 days
each involved 137 associates and 189 parents and grandparents.
People in general find it awkward to discuss about the issue of
infertility and it leads them to not taking proper guidance / treatment
for the same. 29 Associates having infertility issues were identified
and counseling and proper medical treatment, all expenses paid, was
initiated for them.
Our efforts which started with conducting Intelligence Quotient and
Aptitude Test and the special coaching to the children of our
associates yielded good results and first batch taking up SSC
examinations produced 100% result.
Apart from the academic coaching, a 15 day residential "Personality
Development" camp was organized for the children of our associates. 113
children of the associates benefited from the program.
The practice of providing educational scholarships to the children of
associates on need and merit basis continued. 261 children of our
associates benefited with the scholarship amounting to Rs.3.86 Mn.
Initiative for the visits of family members of the associates to all
the Jalgaon plant locations of the Company, giving them information
about work culture and importance of the job their family member is
being continued. Total 115 visits involving 4,537 family members of 984
associates were conducted.
As a recognition of the performance and the long service, 47 more Tata
Nano cars were presented to the deserving associates on the occasion of
"Bhaubeej" (Diwali) in 2010.
Apart from the then limited coverage, the Company has decided to cover
all the associates who have completed more than two years of service
under the umbrella of "Superannuation". Total 3,523 associates were
benefited.
a) Social Involvement :
Once again on demand of the blood banks, a Blood donation camp was
organised wherein 588 units of blood was collected.
b) Training : The Training and Development details are as under,
In House Faculties External Faculties Total
No. of No. of
Location Man
No. of Duration No. of Duration
Asso- Asso-
Programs (Hrs) Programs (Hrs) Hrs.
ciates ciates
Agri
Park 44 509 1352 7 11 154 1506
Plastic
Park 395 5178 16627 12 36 742 17369
Food
Park 97 3732 8529 22 45 1064 9593
Orient
-ation 9 327 13080 Ã Ã Ã 13080
Engineer 8 418 86944 Ã Ã Ã 86944
Training
Overseas 6 53 3844 Ã Ã Ã 3844
Training
Total 559 10217 130376 41 92 1960 132336
ii] Recruitment
The recruitment drive continued throughout the year looking for the
right people which also included the on Campus selection for
Engineering Graduates from agriculture field all over the country. The
recruitment was done on the basis of demonstrated and potential
ability, compatibility with the organizational culture, merit, openness
and fitness with son of the soil empathy. The tally reached to 1,504
gross additions during the year under review.
The permanent employee strength of the Company as on 31st March 2011
was 6,504.
14.Corporate Social Responsibility & Sustainability Report
The rural development work is carried out through the group entities
Gandhi Research Foundation [GRF]
(a S. 25 Company under the Companies Act 1956) and Bhavarlal and
Kantabai Jain Multipurpose Foundation [BKJMF] (A registered public
charitable trust) both recognized for benefit of S. 80G of the Income
Tax Act 1961 and rules made thereunder. During the year under review
the above institutions have been given donations of Rs.41 Mn and Rs. 21 Mn
respectively to meet their objectives. A brief of their significant
contribution is given below :
Activities of GRF
GRF has adopted following objects :
- Dissemination of Gandhiji's teachings for welfare of humanity.
- Establishment of international research and study center for the
dissemination of Gandhiji's teachings.
- Collecting and preserving all Gandhiji resource material under one
roof.
- Carry out Rural Development Programmes.
A 60,000 sq. feet building is planned to house a Museum, Library, Class
Rooms. While lots of books, periodicals, photographs, films, voice
recordings, stamps, artifacts, memorablia etc have been collected for
the above museum. To disseminate thoughts of Gandhiji a scheme of
approaching young minds in schools an examination is run under the name
Gandhi Vichar Sanskar Pariksha in 22 districts and 31,480 students
participated. An exhibition ÃMohan to Mahatma' and ÃSatyagraha' is
taken regularly to schools, colleges and other educational places to
educate children on Gandhiji's thoughts.
6 villages - Wakod, Shirsoli PB, Shirsoli PN, Takarkheda, Mohadi and
Kadauli- in the Jalgaon district have been adopted for educational,
health and sanitation work.
Activities of Anubhuti
Run by BKJMF, the Anubhuti school has been recognized and has won Green
School of the year in change makers category for the year 2010. The
annual awards are held under the aegis of Centre for Science and
Environment (CSE). Over 5,000 schools from all over the country
participated and 600 were shortlisted and the award winners were then
selected for 1,2,3 positions. The first batch of Standard X students
did the school proud by producing spectacular results at the 2011 Board
Examinations.
A new School, Anubhuti-2 has been established for below poverty line
(BPL) students. Standard 1 and 2 (3 sections each) have started
functioning since July 11, 2011. The necessary infrastructure is in
place. Standard 3 and 4 are planned for academic year 2012-13 and
2013-14 respectively.
Sustainability Efforts
Sustainability is ingrained in the philosophy of Jain Irrigation. We
create value not only to the stakeholder in the terms of prosperity,
but, we care for nature and environment. Our each and every step is to
strike the balance between the developmental needs and caring for the
nature and our human resources. We are proud to enter into first 100
of the global
Cleantech companies. The Global awards "Boldness in Business" in
Environment Category by Arcelor Mittal Group. The Ãbest water company
award by UNESCO, Ministry of Water Resources and WATER magazine are the
epitome of the "sustainable" success of the organization. The Indian
Chambers of Commerce, Kolkata bestowed upon us the "Sustainability
Vision Award 2010" for sustainable business model. In 2009 we came up
with first sustainability report as per GRI and also worked on the
concept of Water Foot Printing on onion supply chain. This was unique
as it had included the sustainable strategy part for the first time
devised by water foot printing network of which we are member. Both of
these reports are available online. Jain Irrigation's sustainability
team is working to get its four CDM projects through the validation
process. The work of biodiversity indexing of the Jain Hills watershed
has been completed and will be published soon. The new concept of
"sustainability accounting and reporting" is on anvil, which is
hardwiring the sustainability in the economic and financial aspects of
the Company. To streamline our effort towards corporate sustainability
we are now members of the TERI-BCSD (Business Council for Sustainable
Development). We are working speedily and expanding our horizon on the
concept of JAINGAP. We are presently under implementation stage for
the EN 16000 for Energy Management Systems, ISO 14064 for Green House
Gas Management Systems and SA 8000 for Social Accountability. This is
beyond the present ISO systems standards of 9000, 14000 and 2200
family, and OSHAS 18000. Now, we are under the process of preparation
of our second Sustainability report which will cover all the
information, process and materiality related to Economic, Environment
and Social aspects of the organization in the year 2009-10 and 2010-11.
The report will be published in mid of Dec-2011. This will cover all
the plants and operations in India and USA. Our first report was
published for the year 2008-09. This report will also cover the
stakeholder engagement process and policy for sustainable future is
under process and will be reflected in the report of 2011. The
organizational support for the CSR activities for Rural Village
Development, Gandhi Research Foundation, support for development of
sports and sportsmen are also reflected in the upcoming sustainability
report.
15. Environment Health and Safety performance
The following steps have been initiated during the year 2010-11 :
- Jain Irrigation Systems Ltd. is certified for OHSAS 18001, an
Occupational Health and Safety Management System now for its Jalgaon,
Hyderabad and Udumalpet Plants.
- The Company has integrated the Quality Management Systems (9001),
Environmental Management System (14001) and Occupational Health and
Safety Management System in all its certified plants.
- Plastic Park Bambhori has installed Fire Hydrant system for its
manufacturing units with 6,00,000 liters of water storage, nearly 9,000
meters of pipeline, and 179 hydrant points covering 128 acres of
manufacturing facility.
- Substantial reduction in noise levels (90 to 79 dB) in casing pipe
production is achieved by incorporating noise absorbers in blower
system.
- Auto feeding system of material established in various machines has
avoided manual loading operation, enhancing safety of operation.
- Air Compressor with AC drives has increased life of oil that made
them more environment friendly with less waste generation.
- Introduction of runnerless Moulds for inline emitters has totally
eliminated wastage generation.
- Plastic park uses solar pumps for its entire demo operations and
development works, promotion renewable energy uses.
- Manufacturing plants in new buildings capture the rainwater and use
it for processing.
- Introduction of new Take Up mechanism in dripline has eliminated
human interaction and eliminated the risk.
- New Generation chilling plants in dripline manufacturing unit are
more environmental friendly eliminating usage of F22, an Ozone
Depleting Gas.
16. Internal Controls and Management Information Systems
Background
The Company has been actively working on the transition to a single
software platform. The Company studied the various SAP implementation
strategies used by Micro Irrigation / Pipe / Food and Energy businesses
and began communicating with several Implementation Partners of SAP.
After developing a thorough understanding of best practices, the
Company decided to leverage its operating structure through a SAP
implementation.
By consolidating IT systems, SAP will enable simplified and
standardized work processes across all facets of Company's' complex and
diversified businesses, while enhancing the Company's customer service
culture and driving operating efficiencies.
Implementation
The Company engaged 60 associates to identify the functionality
required in the Company processes. This group of associates has
complemented an experienced full-time project with the team of more
than 40 SAP consultants from our implementation partner, Wipro India
Ltd and 10 SAP consultants from our SAP advisory partner - KPMG
advisory Services and a cross- functional group of Jain Irrigation
Systems Limited's business leaders.
The Company continued with the standard design, configuration and
implementation of its SAP system, however based on the business
requirement certain processes were customised.
The Company has Implemented SAP (Leading ERP business solution
software) to support its strategy of unifying business processes,
information, and IT systems across its manufacturing operations and
depots in India.
We are glad to share that we successfully went live on Finance and
Controlling, Sales and Distributions, Material Management, Production
Planning and Quality Management and Plant Maintenance Module on August
15, 2010. SAP has now replaced legacy systems at all manufacturing
units, depots and offices across India. As is expected Company did
face some issues in initial period most of which have been resolved.
Economic Benefits
The Company has identified the areas having substantial potential
economic benefits - Inventory Management, price management and
administrative and operating efficiencies. The Company is highly
confident that these benefits can be realized.
Internal Controls
SAP implementation allows a number of strategies to implement internal
control in the business application through process mapping,
segregation of duties, authorisations. your company has done the review
of SAP functionality and controls check from Ernst and young Pvt Ltd.
Their suggestions are being implemented. Independent of a SAP
functionality and control check, your Company is proactively
identifying the areas for further improvement which shall remain an
ongoing process.
Future Plan
The Company has plan to integrate its IT infrastructure by rolling out
SAP at foreign subsidiaries to further streamline Manufacturing, Supply
Chain, local and global reporting, analysis in a common enterprise wide
format. It will provide better collaboration with our worldwide units,
transparency and efficiency for global operations.
17. Fixed Deposits
The Company, during the year under review, has not accepted nor renewed
any deposits from public, under the Companies (Acceptance of Deposits)
Rules, 1975. The Company had no unclaimed / overdue deposits as on
31st March, 2011.
18. Auditors
The Auditors, M/s.Haribhakti and Company, Chartered Accountants, Mumbai
have furnished a Certificate under Section 224(1B) of the Companies
Act, 1956 that their proposed re appointment, if made, will be in
accordance with the said provision of the Companies Act, 1956. The
Audit Committee has recommended that m/s Haribhakti and Company, a firm
of Chartered Accountants, Mumbai to be reappointed as Statutory
Auditors. The Shareholders may reappoint the Statutory Auditors as per
AGM Notice attached separately.
19.Promoters Group for the purposes of SEBI(Substantial Acquisition of
Shares and Takeover)Regulations, 1997
In pursuance to clause 3 (1) (e) (i) of SEBI (Substantial Acquisition
of Shares and Takeovers) Regulations, 1997 and definition of group as
defined in the Monopolies and Restrictive Trade Practices Act, 1969 the
representative of Promoters' Group of the Company has filed the
following list of the individual Promoters and Corporate entities of
Promoters Group as under:
A. Individuals
Sr. No. Name of Promoter
1 Shri Bhavarlal H. Jain
2 Shri Ashok B. Jain
3 Smt. Jyoti Ashok Jain
4 Arohi Ashok Jain (N/G Ashok B Jain)
5 Aatman Ashok Jain (N/G Ashok B Jain)
6 Shri Anil B. Jain
7 Smt. Nisha A. Jain
8 Athang Anil Jain
9 Amoli Anil Jain (N/G Anil B. Jain)
10 Ashuli Anil Jain (N/G Anil B. Jain)
11 Shri Ajit B. Jain
12 Smt. Shobhana Ajit Jain
Sr. No. Name of Promoter
13 Abhedya Ajit Jain (N/G Ajit B. Jain)
14 Abhang Ajit Jain (N/G Ajit B. Jain)
15 Shri Atul B. Jain
16 Dr. Bhavana Atul Jain
17 Anmay Atul Jain (N/G Atul B. Jain)
B. Corporate Entities
Sr.
No. Name of Corporate Entity
1 Atlaz Technology Pvt. Ltd
2 Cosmos Investment & Trading Pvt. Ltd.
3 Jalgaon Investments Pvt. Ltd.
4 Jain Brothers Industries Pvt. Ltd.
5 JAF Products Private Ltd.
6 Jain Extrusion &Moulding Pvt. Ltd.
7 Jain Green Energy Ltd. (Formerly Jain Solar Systems Limited)
8 Labh Subh Securities International Ltd.
9 Pixel Point Pvt. Ltd.
10 Stock & Securities India Pvt. Ltd.
11 Adhunik Hi Tech Agriculture Pvt. Ltd. (Formerly Gauri Hi Tech
Agriculture Pvt. Ltd.)
12 Jain Investments & Finance BV, Netherlands
13 Jain Overseas Investment Ltd., Mauritius
14 Jain investments A.G., Switzerland
C. Trust Entities
Sr.
No. Name of Trust Entity
1 Jain Family Holding Trust
2 Jain Family Investment Trust
3 Jain Family Entreprise Trust
4 Jain Family Investment Management Trust
5 Jain Family Trust
20.Particulars of Employees
As per provisions of Section 217 (2A) of the Companies Act, 1956 only
eight of the persons in employment of the Company have drawn
remuneration in excess of Rs. 500,000/- per month, during the year under
review or part thereof as per details in the Annexure to this report.
21. Particulars of energy conservation, technology absorption, research
and development, foreign exchange earnings and outgo.
A) Energy Conservation
Plastic Park
The following steps have been initiated during the year 2010-11:
- Introduction of all electric injection molding machines has given 40%
of energy saving compared to conventional injection moulding machines.
- Continuing the productivity improvement JISL developed nearly 80 new
moulds of multi cavity inhouse and 45 moulds from outsourcing, which
has enhanced productivity and saved nearly 25% of energy compared to
single cavity moulds.
- State of the art injection moulding machines with servo motor drives
installed, consumes nearly 30% less energy compared to conventional
Injection Moulding Machines.
- Introduction of variable frequency drives with pressure regulation in
air compressor units in injection moulding and MIS pipe have resulted
yield 30% reduction in energy consumption.
- For all PVC Pipe production all the socketing operations are made
online. This has given 10% energy conservation.
- Energy monitoring is streamlined with incorporation of energy meters
at all critical consumption points.
- New generation chilling plants introduced in dripline production are
saving 10% energy compared to conventional cooling tower.
- Various efforts in all departments at plastic park have resulted in
total saving of 26,77,193 kWh of electrical energy during 2010-11.
B) Resource Conservation
Plastic Park
The following steps have been initiated during the year 2010-11:
- In dripline manufacturing a state of the art recycling machines
facilitate direct "Waste to Granules" at single station, thereby
eliminating grinding operations as well as facilitates complete
utilisation of rework material.
- Introduction of online socketing operations in pipe production
eliminated 84,000 Kms of tractor movement saving 8,400 litres of diesel
during 2010-11.
- All Electric injection moulding machines reduced 500 liters of
hydraulic oil per machine reducing waste generation.
Agri Park & Tissue Culture
During the year the measures taken for reduce energy consumption are as
follows :
- Instrumentation : The lab has in place an instrumentation facility
which includes general instrumentation and centralized instrumentation.
By adopting the centralized instrumentation, we are able to reduce
energy consumption by about 30%.
- The innovative process developed for micro- propagation of banana has
enabled us to save 25% electrical energy.
- At banana hardening center nine solar power operated pumps totalling
75 HP has been installed to replace one 63 kva power generator and to
fulfill increased power demand.
- 10 numbers of solar based water pump have been installed for
irrigation to substitute electrical energy at our research farm.
Food Park
30% of the energy requirement of the division is now met through the
renewable resources, post commissioning of the Bio-gas plant last year.
Apart from generating electricity, the project is now utilising the
waste heat to run vapour absorption system thereby resulting in 15%
reduction in refrigeration load.
The division is now in the process of installing a Bio- mass/Bio-gas
boiler, which will result in 20% of the steam requirement being met by
renewable resources.
Solar/Green Energy
The 1.7mw Bio Gas Plant becoming fully operational has resulted in
substantial energy conservation during the year.
C) Technology Absorption
Plastic Park
- Company has imported and established Rapid Prototyping technology.
This has facilitated Company to develop the new products First Time
Right and reduced the product development time giving full security to
in-house design.
- Technology of high precision, high speed, low cycle time injection
moulding is imported from Europe and established. This technology
absorption with high cavitation moulds enhanced productivity by 1200%.
- First of its kind in the country, high capacity extrusion machines
are established with 1500 kg/hr of through put.
- Company has established ERP (Enterprise Recourse Planning) SAP system
for its entire business operations, thereby integrating various island
activities and obtained real time business project status.
Agri Park & Tissue Culture
- At R&D laboratory center few new sophisticated instruments viz.
Real-time Polymerase Chain Reaction (PCR), fluorescence spectroscropy,
auto titrator and lyophilizer were added.
- The new process developed for micro propagation of banana has been
taken up for production with better efficiency.
- A new approach has been developed for soil analysis and fertilizer
recommendation for sustainable farming by introducing a Soil Health
Card which addresses the soil nutrient status and provides scope for
recommendation of nutrients for various crops in question.
Food Park
The technology for unloading and pre-treatment of fruits developed
in-house by the Company few years back has now been fully
commercialised in all the plants.
Energy Park
Solar application R&D equipped with advanced instruments required for
electronics R&D has been fully absorbed/ developed.
D) Research and Development
Agri Park & Tissue Culture :
- In tissue Culture a new protocol has been developed for producing
micro tubers of Potato. This work had been initiated after the
enquiries received from few of our domestic and international customers
associated with fruit & vegetable processing. The achievement will
attract potato processor / farmers in propagating their valuable
planting material through tissue culture while organization will get a
benefit to increase the business.
- An innovative process has been developed for micropropagation of
banana with reduced energy, increased work efficiency and less space
requirement. This will help organization to increase the production
capacity minimum by two fold.
- Onion : During the last year we could release a new hybrid of high
solid onion variety for contract farming.
- Isolation of methane producing micro organisms (methanogens): The
biotech lab has standardized and optimized protocol for isolation of
Methanogens through its identification in in vivo / in vitro cultures.
- Study of Molecular mechanism of Flowering : Flowering is a very
important biological phenomenon. Banana improvement through
conventional means is very laborious and time consuming and with the
intervention of modern bio-technological approaches, this task becomes
relatively easier, as we know its crop biology. To understand how the
flowering is regulated in Musa, at the molecular level, this research
becomes pertinent. The full length FT3 gene has been cloned and the
sequence has been submitted to National Centre for Biotechnology
Information (NCBI) data base.
- Cloning & Sequencing of Jatropha Mosaic Virus (JMV) : Jatropha is
infected by Mosaic Virus (Jatropha Mosaic Virus, JMV), resulting in to
serious damage to crop. We tried to characterize the JMV. It has been
found out that there are two componants of DNA in JMV of approximately
2.7kb. Both the components were cloned and sequenced. Both these
sequenced DNAs have been submitted to NCBI database.
- Rice Cultivation under Drip Irrigation : As reported earlier this
project has entered into new phase of adoption and now the technology
we are demonstrating it at farmers field.
Food Park
Following projects were initiated in the year and few of the projects
have since been completed.
1. Conservation of Water and improving microbiology of Onions.
2. Improving quality of stored Onions to avoid wastage in storage and
processing.
3. Improving quality of the Dehydrated Onions.
4. Modification in the pre-treatment process of Mangoes to improve
quality.
Green Energy/Solar Park
Following projects were initiated in the year and few of the projects
have since been completed
- LED & CFL street light, home light, lantern developed as per Ministry
of Non Conventional and Renewable Energy (MNRE) Specification &
approved from by the MNRE.
- Enclosure developed for Luminary products.
- Solar Pump controller development has started.
- SMS Data logger development has started.
- Technological study of grid tie and off grid Inverters .
New Products Developed (R&D) Plastic Park
- In the area of MIS & SIS nearly 65 new elements are developed. This
has extended the range of some of existing products and added new
features to some products.
- Company has developed manufacturing process for production Total Lead
and Tin Free casing pipes, column pipes & plumbing pipes, thereby
making the product more environmental friendly.
- New pump connector developed in Sprinkler system has eliminated
additional top pump connector, resulting in reduction of inventory.
- Development of Single Metal Clamp Plus has eliminated metallic ring
in the assembly there by conserving natural resources and energy
required for its production.
R & D Expenditure (Rs. in Million)
Sr.
No. Particulars 2010-11 2009-10
a. Capital Expenditure 197.38 146.52
b. Revenue Expenditure 102.88 48.48
c. Total 300.26 195.00
d. % of Revenue 0.90% 0.72%
22.Acknowledgement
The Directors take this opportunity to place on record their
appreciation of whole hearted support received from all stakeholders,
customers and the various departments of Central and State Governments,
Financial Institutions, Bankers, the Dealers and Suppliers of the
Company. The Directors wish to place on record their sense of
appreciation for the devoted services of all the associates of the
Company.
by order of the Board
Sd/-
Anil B. Jain
Mumbai, 5th September 2011 Managing Director
Mar 31, 2010
The Directors present hereby their report on the business and
operations of the Company and the financial statements for the year
ended 31st March, 2010.
1. Financial Highlights Rs. in Million (except EPS)
Particulars 2009-10 2008-09
Domestic Sales 21,735 16,623
Export Sales & Services 5,209 4,886
Other operating Income 285 280
Sales and Operating Income 27,229 21,789
Operating Proft 6,647 3,972
Interest and Finance Charges 1,943 1,611
Depreciation and Amortisation 686 473
Amounts written off and provisions 86 50
Profit before taxation & exceptional items 3,932 1,838
Exceptional items (Service tax disallowed) -- --
Provision for Tax
Deferred Tax (Asset)/Liability 317 615
Current Tax à provision 671 206
MAT Credit 232 -206
Fringe Benefit -- 21
Proft for the year 2,712 1,202
Profit b/f from the previous year 2,851 2,462
Balance available for appropriation 5,563 3,664
Out of which the Directors have
appropriated as under;
Proposed Dividend 357 219
Dividend Tax 61 37
General Reserve 271 120
Transfer to CRR 425 437
Balance to be carried forward 4,449 2,851
Earnings Per Share
Basic 35.84 16.12
Diluted 35.77 16.03
2. Operations
The net sales grew by 25% on yoy basis. The domestic sales grew at an
impressive 30.8% to Rs.21,735 mn on the back drop of a robust demand in
MIS/SIS, Fruit processing and PE/PVC piping segments. Exports grew 6.6%
at Rs.5,209 mn despite a severe slowdown in the world economy and
specially in western world post October 2008 financial crisis. The
notional gain on account of foreign currency fluctuations at Rs.7 1 1 . 0
7 mn (as against loss of Rs.777.23mn last year) does not impact the cash
flows. Thus, the operating profit at Rs.6,647 mn improved by 67.4%
reflecting the continual improvement in resource utilization and
economies of scale.
The profit for the year is higher than the earlier year by about 125.7%
at Rs.2,712mn. For the first time the Company has reported free cash
flows of Rs.530 mn.
3. Dividend
An amount of Rs.13.54 mn is payable as Dividend on the Redeemable
Preference Shares issued by the Company as per predetermined coupon
rate and an amount of Rs.2.30mn is payable as Dividend Distribution Tax
on the said Preference Dividend. The Board of Directors have
recommended to the Shareholders for declaration at the ensuing AGM a
dividend of Rs.4.50 per share to the eligible Shareholders. The said
dividend is expected to result in a cash outgo of Rs.343.32mn while the
outgo on the Dividend Distribution Tax on the said dividend works out
to Rs. 58.35mn.
4. Preferential Issue, ZCCB Conversion, ESOP allotment and use of the
proceeds
On 9th April 2009, as per Shareholders authority in GM dated 26th March
2009 a total of 1,997,780 Equity Shares of Rs.10 each were issued to the
International Finance Corporation, (IFC) as arm of world bank in
Washington on a Preferential basis. The Allotment resulted in an
increase of Rs.19.98 mn in Share Capital and Rs.700.02 mn in Share Premium
reserves. Additionally, holders of 9,350 Bondholders of the Zero Coupon
Convertible Bonds of $1,000 each who opted for the conversion in terms
of the Offering Circular dated 24th March 2006 during the year were
allotted 1,200,166 Equity Shares of Rs.10 each resulting in an increase
of Rs.12 mn in Share Capital and Rs.402.76 mn in Share Premium reserves.
During the year under review Associates holding employee stock options
worth 456,790 Equity Shares of Rs.10 each opted to exercise their option
and applied for 456,790 Equity Shares of Rs.10 each at a discounted
(Original price Rs.410.35 per shares) exercise price of Rs.3 0 7 . 7 6 per
share. This resulted in a share capital increase of Rs.4.57mn and
accretion to securities premium account of Rs.182.88mn
However, till date in Fy 2011, further 192,540 Equity Shares of Rs.10
each were issued to the holders of the 1,500 Zero Coupon Convertible
Bonds of $1,000 each who opted for the conversion in terms of the
Offering Circular dated 24th March 2006. Hence after Fy 2010, an amount
of Rs.1.93mn has been added to the Share Capital of the Company while an
amount of Rs.64.61mn has been added to the Securities premium account of
the Company. Board is happy to report that all of the bondholders have
opted for the conversion of ZCCBs into Equity Shares. There was no
impact of the conversion of ZCCBs on the cash flows of the Company
during the year as money was raised in Fy 2006 and utilised in Fy 2 0 0
7 .
The proceeds of allotment to IFC Washington and the ESOP allotment has
augmented the long term resource base of the Company and have been used
as per the objects of the issue.
As you may be aware, pursuant to approval of Shareholders on the 19th
October 2007, the Company allotted 8.6 mn Equity Warrants to the
Corporate Entities of the Promoters Group on Preferential basis under
the applicable SEBI (DIP) Guidelines. The subscribers had paid an
amount of 10% (Rs.411 mn approx) at a price of Rs.478.15 each. Out of the
above, the subscribers of Equity Warrants had opted for conversion of
1,102,600 warrants and as a result 1,102,600 Equity Shares of Rs.10 each
were issued to the holders of the warrants in Fy 2009. However,
74,97,400 warrants lapsed as the holders thereof did not exercise the
conversion rights. Hence, as per terms of the issue an amount of
Rs.358.49 mn was forfeited. The proceeds of forfeited warrant deposit
appropriated on the conversion option not being exercised has augmented
the long term resource base of the Company.
5. Resource mobilization and capacity expansion
During the year under review, the Company has raised from international
financial markets / institutional lenders, further External Commercial
Borrowings (ECBs) / Foreign Currency Loans based on LIBOR linked rate
at competitive pricing. Total amount sanctioned and disbursed is $30mn.
The loan amounts are being used by the Company for the expansion and
modernization activities.
The Company has invested an amount of Rs.1.6 bn to increase the capacity
of the MIS/SIS division by 38,190 MTPA. An amount of Rs.341mn has been
spent on capital expenditure for the piping segment adding in excess of
over 20,925 MTPA in the segment. Rs.448mn has been spent on capital
expenditure for the Agro processed division, the capacities have come
on stream in April 2010. An amount of Rs.54 mn. has been spent on capital
expenditure for Tissue Culture segment to increase the capacity by 5 mn
plantlets. During the year under review Company has purchased 8 Wind
Mills at an aggregate cost of Rs.818 mn. of 1.65 MW each to augment its
captive power capabilities and is working on a unique Bio methanation
Power project at Jalgaon to produce 1.7 mw of captive power from waste
generated by the food processing plants and agricultural waste at
aggregate cost of Rs.160 mn. The Company has spent an amount of Rs.158 mn
in Solar Water Heating business while it has started a Solar PV
manufacturing facility at an initial cost of Rs.127 mn during the year
under review. An amount of Rs.203 mn was spent towards strengthening the
common corporate service infrastructure.
6. Other strategic and major developments post March 2010
Company has recently started trial runs for the Biomethanation cum
Power project (1.7 MW) so as to utilize the waste generated from its 2
Food plants and also solid waste which is available locally. At 85%
utilization, saleable power would be 12.33 Million Units. Besides
this, organic fertilizer of about 8,085 TPA will be produced at full
capacity utilization. The power generated will be used as captive power
by the Company and the project will be eligible to earn carbon credits
for next 10 years as follows:
Emission reduction in CO2 = 9,840 tCO2
Carbon credits CERs = 8,200 CERs
The Company has taken effective steps to set up a manufacturing
facilities at Himachal Pradesh in two phases, the first phase now in
implementation phase involves the investment of approximately Rs.620mn.
The integrated project involves survey, investigation, planning,
designing, and commissioning of manufacturing units under the Plastic
business umbrella. The Plastic Park will have manufacturing facilities
for Micro Irrigation Systems (MIS) including online tubing, inline
tubing, injection moulding, sprinkler parts. The said Plastic Park
would also include manufacturing facilities for precision farming &
green houses as well as PVC Pipes, PE Pipes and accessories. The total
capacity of the Plastic park in Phase I would be 30,780 MT and 6 lacs
SQM of precision farming system. In phase two (Rs.380mn) the Company
plans to double the capacity of plastic park and also to create the
Agro processing facilities within the same location. The Company has
plans to create processing capacity i.e. "Quick Freezing Unit" for
various fruits including Mango, Pomegranate, Peas and other vegetables.
The total capacity of the Food Park would be 8,730 MT of fruits and
vegetables.
7. The operations of subsidiaries
The integration activities with investee companies have continued in
earnest and there is a very positive effect on the product development
activities of the Company as feedback from various geographic areas are
now available for such activities. The availability of a wide spectrum
of products in the irrigation segment is making it possible for the
Company to serve customers in a complete manner which in the pre-
acquisition time resulted in loss of business opportunities.
The Mauritius based direct subsidiary of the Company has earned an
income of $ 769,811 and made a net loss of $937,682. The loss being due
to redemption premium ($1 mn approx.) on redeemable preference shares
charged off in single year. Summarised Balance Sheet and the Income
statement of the said subsidiary is available elsewhere in the Annual
Report. The resources of the subsidiary have been further strengthened
by infusion of $14.65 mn as Equity Capital during the year under
review. Further, there was a redemption of Redeemable Preference Shares
worth $ 16.84 mn from the said subsidiary to the Company.
The Netherlands based subsidiaries have invested monies for
incorporation of a new step down subsidiary in Turkey.
During the year under review the Company incorporated another
subsidiary in the Netherlands in March 2010 and capitalised the same
with Euro18,000. The said subsidiary has raised an amount of $35 mn
(Euro 26 mn approx) . The amount has been remitted back to the holding
Company to a large extent ($22mn) to reduce the investments of the
holding Company. It has just started operations as an investment and
trading entity and a Summarised Balance Sheet and the Income statement
of the said subsidiary is available elsewhere in the Annual Report.
Other Subsidiaries
Information on operations of other subsidiaries including new
acquisitions has been covered in Management Discussion and Analysis in
this report.
9. Directors retiring and their background
Retiring Directors
Shri A.R Barwe and Shri R. Swaminathan are retiring by rotation and
being eligible offer themselves for reappointment at the ensuing AGM.
In terms of the Corporate Governance requirements, given below are the
brief resume of each of the retiring directors:
Shri Anirudha R. Barwe (Independent) is a Director and Chairman of the
Audit Committee. He holds a post graduate degree in Mathematics and is
an associate of the Indian Institute of Bankers in Mumbai. He started
his career as a lecturer in North Maharashtra in 1960 and was a
Probationary Officer of State Bank of India (SBI) in 1961. He held
several important positions within State Bank of India and in 1996 was
named Managing Director of SBI Capital Markets Limited. Mr. Anirudha
Barwe has also held Directorships in various subsidiaries of SBI and
stock exchanges such as NSE and OTCEI. Until 2001, he held the position
of Chief Financial Officer of IDFC Limited. He is currently advising a
number of entities including foreign bodies in the financial field and
is a member Government economic committees and other listed Company
boards.
Shri R. Swaminathan is a Director à Technical and Chemical Engineer
responsible for manufacturing operations in Polytube, Sprinkler, PVC &
PC Sheets and PVC & PE Pipe units in India as well as overseas. Mr.
Swaminathan has 36 years of experience in operation and maintenance
activities of plants handling such things as Solvent Extraction,
Plastics Extrusion and Injection Moulding. He joined the Jain Group in
1982 and was appointed a full-time Director in 1996. He is a whole time
director responsible for technical side of plastics business.
10. Directors Responsibility Statement
In accordance with the provisions of Section 217(2AA) of the Companies
Act, 1956, your Directors state that:
i) in the preparation of the annual accounts, the applicable accounting
standards have been followed except, to the extent indicated in notes;
ii) the accounting policies are selected and applied consistently and
are reasonable and prudent judgments and estimates were made so as to
give a true and fair view of the state of affairs of the Company as at
31st March, 2010, and, of the profit of the Company for the year ended
31st March, 2010;
iii) proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of
Companies Act, 1956, for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;
iv) The Directors have prepared the annual accounts for the financial
year ending 31st March, 2010 on a Ãgoing concern basis.
11. Material Developments In Human Resource
Working at Jain Irrigation it is not merely about contractual employer
employee relationship. It is more about being associated with extended
family with common purpose. Hence, everybody working in the Company is
called an Associate. An associate is more than worker/employee because
he is not employed merely for manual activity against wages or salary.
He believes and possesses common approach and shares/helps to achieve
common purpose. Also he is a person who is in agreement with plans and
policies of the organization. He is a stake holder and a colleague and
a family member.
The Company as a policy:
a) Recruits, trains, develops and win our Associates to be committed
towards the organizational goals and culture.
b) Considers advancement of Associates through life to be our concern,
just as corporate growth and prosperity ought to be their concern.
c) Builds teamwork for peace and prosperity of the Associates & the
Corporation.
At Jain Irrigation, we do not believe in putting boundary walls of job
description to the responsibility / enthusiasm of an Associate, instead
we follow principle of work ownership.
I] Associate Engagement:
a) Education: The initiative introduced last year with a Jalgaon based
local NGO for providing guidance to students studying between VII to X
standard on how to prepare for examination and how to improve the marks
obtained as well as time management and improvement of writing speed
received a good response and the classes were conducted for 252 days,
covering 64,260 coaching hours.
The scholarship scheme introduced earlier for the children of
associates on need and merit basis continued, and 280 children
benefitted from such scholarship during period under review, at an
expense of Rs. 2.49 mn.
(b) Family Trips: 7,617 family members of 1,250 associates were invited
for a visit to all locations of Jain Irrigation Systems Limited in
Jalgaon. The family members of the associates also were given
information about the organization, work culture and also were made to
visit the place of work of the associate and know the importance of the
work the family member is putting in.
(e) Distribution of Cars: As recognition of the long service and the
performance, 28 nos. of Tata Nano cars were presented to the deserving
Associates on the occasion of "Gudhi Padwa".
(f) Social Involvement: Now Jalgaonkars can rely on Jain Irrigation for
making up the shortage in the blood banks. Once again on demand of the
blood banks, a Blood donation camp was organised wherein 725 units of
blood was collected and donated.
II] Recruitment:
The organizational performance kept on demanding right manpower at the
right place. A country wide drive of Campus selection was undertaken to
meet the demand of Engineering Graduates from agriculture field in the
area. The recruitment was done mainly on the basis of demonstrated and
potential ability, compatibility with the organizational culture,
merit, openness and fitness with sons of the soil empathy. The tally
reached to 1,121 gross additions during the year under review. The
permanent employee strength of the Company as on 31st March 2010 was
5,662.
12. Corporate Social Responsibility/ Corporate Sustainability Report
As per the last years commitment we have published our Sustainability
Report-2009. This report contains (which is separately attached for all
shareholders) the details of Corporate Social Responsibility (CSR)
initiatives of the Company. It also covers economic, environment and
social impact caused by our organization through its everyday
activities. It is a standard process having global influence of
reporting on the non-financial performance of the Company. This report
is as per the Global Reporting Initiatives (GRI) application level of
A+ category. The report is also GRI checked. This is also available on
our website http://www.jains.com/PDF/ Sustainable%20Report%20Final.pdf.
For any queries related to this report please contact
sustainability.cell@ jains.com. The next sustainability report will be
published in September 2011 which will cover two financial years
2009-10 and 2010-11.
As a part of CSR activities the Company is supporting following
important projects: (1) Rural Development of Village Wakod, (2) Gandhi
Research Foundation and (3) Anubhuti School - An Experimental
Residential nternational Academy (4) Jain Sports Academy.
13. Environment Health & Safety Performance
Environment: The following steps have been initiated during the Fy
2010.
- The low heat generation (35ðC Oil temperature as against 55ðC Oil
temperature) by the new injection moulding machines has yielded lesser
waste oil generation.
- Auto feed raw material system installed in PVC Pipe, HDPE Pipe and
Casing Pipes has reduced dust levels to less than 100 mg/m3.
- Ready mix concrete plant installed has eliminated large number of
open air cement mixing operations.
This has reduced the dust level in the ambient air. Besides dust the
RMCS have given a saving of 1.15 mn litres of water in construction.
- New generation grinding cum pelletizing facility in DRIPLINE and new
injection moulding machines have low noise level of 73-74 dB as against
prescribed 78dB.
- Rain water harvesting structure with a holding capacity of 20 mn
litres is established. This gives substantial benefit of recharging the
water table.
- Plantation of nearly 4,500 trees, and the new flower beds developed
has increased the green canopy of Plastic Park to nearly 33%. The total
trees at Plastic Park at Jalgaon are nearly 10,000 .
- RO. Water plant is installed and nearly 36,000 litres of R. O.
Drinking water is supplied to all employees.
- Smoke and Heat Detection System is installed in the corporate
building covering nearly 1600 Sq.mt. of built-up area.
- Heat insulating roof along with turbo ventilators in all new
buildings has improved the working conditions of manufacturing shops.
- Company has taken up Green Building construction promoting usage of
green building material.
14. Internal controls for adequacy and Management Information Systems
The Company believes that a formal strong control framework is
prerequisite for establishing an effective governance framework. It is
also equally important to nculcate a culture that fosters the control
environment in the organization. Therefore, the Company has established
both formal and informal processes to assess and strengthen the
internal controls across the businesses.
The Company is committed to establish an internal control framework
that ensures prevention and detection of control failures, ensures
efficiency and effectiveness of processes to strengthen the delivery
capabilities of the organization. Formal processes include management
control framework, internal audits, independent review of control
system by Statutory Auditors, review mechanism by the Audit Committee
and periodic review by the Management. To ensure independence and to
ncorporate leading control practices, internal audit function has been
outsourced to Ernst & young Private Limited, a renowned professional
firm. Significant deviations in the internal control framework and
remedial action plan are discussed with the Audit Committee of the
Board.
your organization has grown at a very rapid pace and, therefore, along
with the formal control mechanism, the Management has placed equal
emphasis on building a culture that drives value and control
consciousness. The management information system is the main source of
the control and decision making mechanism in the Company. The Company
operates under decentralized operating controls exercised at various
Segment Business Unit levels. The budgetary mechanism is already in
place and annual & rolling budgets are approved by the Board. The
actual performance versus budgets is measured for the deviations and
timely corrective actions taken.
The Company is close to going live with an ERP application which along
with facilitating business transactions, will also establish a robust
automated preventive control framework.
15. Fixed Deposits
The Company, during the year under review, has not accepted nor renewed
any deposits from public, under the Companies (Acceptance of Deposits)
Rules, 1975. The Company had no unclaimed / overdue deposits as on
31st March, 2010.
16. Auditors
The Auditors, M/s. Dalal & Shah, Chartered Accountants, Mumbai have
expressed their unwillingness to continue their engagement for Audit
for Fy 2011. The Audit Committee and the Board have recommended m/s
Haribhakti and Company, a firm of Chartered Accountants in Mumbai with
several branches to be appointed as Statutory Auditors instead of
retiring Auditors. m/s Haribhakti and Company have furnished a
Certificate under Section 224(1B) of the Companies Act, 1956 that their
proposed appointment, if made, will be in accordance with the said
provision of the Companies Act, 1956. The Shareholders may appoint the
Statutory Auditors as per AGM Notice attached separately.
17. Promoters Group for the purposes of SEBI (Substantial Acquisition
of Shares and Takeover) Regulations, 1997
In pursuance to clause 3 (1) (e) (i) of SEBI (Substantial Acquisition
of Shares and Takeovers) Regulations, 1997 and definition of group as
defined in the Monopolies and Restrictive Trade Practices Act, 1969 the
representative of Promoters Group of the Company has filed the
following list of the individual Promoters and Corporate entities of
Promoters Group as under:
A. Individuals
Sr. No. Name of Promoter
1 Shri Bhavarlal H. Jain
2 Shri Ashok B. Jain
3 Smt. Jyoti Ashok Jain
4 Arohi Ashok Jain (N/G Ashok B Jain)
5 Aatman Ashok Jain (N/G Ashok B Jain)
6 Shri Anil B. Jain
7 Smt. Nisha A. Jain
8 Athang Anil Jain
9 Amoli Anil Jain (N/G Anil B. Jain)
10 Ashuli Anil Jain (N/G Anil B. Jain)
11 Shri Ajit B. Jain
12 Smt. Shobhana Ajit Jain
13 Abhedya Ajit Jain (N/G Ajit B. Jain)
14 Abhang Ajit Jain (N/G Ajit B. Jain)
15 Shri Atul B. Jain
16 Dr. Bhavana Atul Jain
B. Corporate Entities
Sr. No. Name of Corporate Entity
1 Atlaz Technology Pvt. Ltd
2 Cosmos Investment & Trading Pvt. Ltd.
3 Jalgaon Investment Pvt. Ltd.
4 Jain Brothers Industries Pvt. Ltd
5 JAF Products Private Ltd.
6 Jain Extrusion & Moulding Pvt. Ltd.
7 Jain Solar Systems Ltd.
8 Labh Subh Securities International Ltd.
9 Pixel Point Pvt. Ltd.
10 Stock & Securities India Pvt. Ltd.
11 Adhunik Hi Tech Agriculture Pvt. Ltd. (Formerly Gauri Hi Tech
Agriculture Pvt. Ltd.)
12 Jain Investments & Finance BV, Netherlands
13 Jain Overseas Investment Ltd., Mauritius
14 Jain investments A.G., Switzerland
C. Trust Entities
Sr. No. Name of Trust Entity
1 Jain Family Holding Trust
2 Jain Family Investment Trust
3 Jain Family Entreprise Trust
4 Jain Family Investment Management Trust
5 Jain Family Trust
18. Particulars of Employees
As per provisions of Section 217 (2A) of the Companies Act, 1956 only
ten of the persons in employment of the Company have drawn remuneration
in excess of ^200,000/- per month, during the year under review of part
thereof as per details in the annexure to this report.
19. Particulars of energy conservation, technology absorption, research
and development, foreign exchange earnings and outgo
A) ENERGY CONSERVATION
Plastic Park- energy conservation
- The Company continued installation of AC drives and PLC in all
manufacturing equipment where D.C. driver exists. This has given
additional energy conservation.
- The Power factor of total manufacturing unit is maintained at 0.99
(average), thereby increasing effective utilization of power, and has
resulted in a gain of power factor incentive of ?14 mn.
- In the area of moulded components, 77 New multi cavity moulds were
introduced, giving nearly 35% energy saving in their usage.
- Wind driven ventilators are extended to the new buildings gaining
further energy conservation.
- Various measures such as AC drives, new generation machines and
improved processes have resulted in saving of nearly 46,74,808 Kwh
energy in M.I.S. products and 11,17,411 Kwh in Pipe and Sheet products,
giving a total saving of ?26 mn in 2009-2010.
Agri Park- energy conservation
- With adding pomegranate and round year banana production under tissue
culture gave us significant saving in terms of energy. The efforts are
under way to diversify in more crops and adopt innovative methods of
production to save energy further. Recently we nstalled solar powered
pumps and cooling fans for green houses and shade houses to save on
fossi fuel based energy by using green energy.
Food Park- energy conservation
- The Company has taken major steps during the year for sustainable
heat production by utilizing its own fruit and vegetable waste
generated during processing in normal course. Called as bundled project
for utilization of solid waste and using efficient means for generation
of heat energy for food processing at Chittoor (AP) unit I and II
(steam generation), Baroda (Gujarat)(hot water) and Sihore, Bhavnagar
(Gujarat) (hot air generation) at a cost of ^1.22 mn. The investment
will be utilized to change the conventional and old heat generation
systems required for food processing units at various plants in India
as follows:
Viz: 1. Fruit Processing Plant Chittor, Unit I and Unit II, Andhra
Pradesh
2. Onion Dehydration Plant, Baroda, Gujarat
3. Onion Dehydration Plant, Sihore, Bhavnagar Gujarat
This will be a major step for corporate sustainability and attempt to
reduce the scarbon foot print of corporate as a whole
Energy Park- energy conservation
- Use of efficient luminaries in place of tube lights.
- Factory shed is paneled with PUF insulation to save the heat load and
air-conditioning load.
- All the reactors are also insulated tanks to prevent the heat losses
because of radiation in the biogas plant.
- Using waste heat generated from the bio gas engine to produce hot
water and vapour abruption systems.
B) TECHNOLOGY ABSORPTION
Plastic Park-Technology Absorption NA Food Park-Technology Absorption
NA
Agri Park-Technology Absorption
Under sustainable agriculture development JISL has recently started
Jain Good Agriculture Practices for its contract raw material growers
and introduced a Soi Health Card along with nutrient recommendation for
various crops.
Energy park- Technology Absorption
- A fully automatic line for the module manufacturing is commissioned.
Our team of engineers with the help of line suppliers engineers had
completed training to run & maintain the line independently.
- Bio gas generation and power production started on trial basis. The
plant was set up with the German technology.
- Solar application requires lot of electronics. Our electronic team
have designed charge controllers, tracker etc. in house and released
for the production.
C) RESEARCH AND DEVELOPMENT
Plastic Park- Research and Development
- All plastic saddle with male, female coupler system developed has
eliminated costly and energy consuming metal parts, and enhanced the
productivity.
- New End Cap developed, has eliminated turning operations leading to
more energy conservation.
- All plastic super flow filters developed, have replaced high energy
consuming metal parts and yielded a corrosion free system.
- In the area of PVC moulded fittings, 40 new components are
introduced.
- Range of PE Fittings is extended to Dia 1600 mm, which has given
additional cutting edge in the marketing of PE Pipes.
- Product range of column pipes is extended to 6".
- Tube heating process by LP Gas in Drip Tube production is replaced by
hot air blowing process, eliminating the hazard of Gas fire.
- Pressure relieve cum Non return valve for open canal wall lining is
developed. This facilitated the pressure balancing between the canal
water and sub soil water.
- Introduction of drip tube with pressure compensating flat drippers
has facilitated the new product to establish in uneven terrain.
- Various new designs and improvements have increased the product range
by nearly 100 new elements.
Agri Park- Research and Development
- Jain Irrigation Systems Limited has successfully commercialised
Pomegranate, first woody plant commercialized in the country on million
scale (lab produced 1 million plants), the team of scientists has now
strong footholds towards success on another woody plant i.e. oranges,
which will enable us to produce disease free, high yielding plants on
large scale that will benefit Company in meeting the demand of desired
raw material for fruit processing unit in future, while farmer will be
benefited by getting an assured price of their produce. Taking
advantage of expertise the tissue culture division has again brought
another crop under his umbrella is Potato, a crop where quality
planting is always an issue. The divisions unique procedure is able to
produce micro tubers in vitro in cost effective manner.
- Agriculture R&D division has developed unique method of Ultra High
Density Plantation of Mango and Guava, which in turn give 2-3 times
higher yield with very short (2-3 years) gestation period. Similar
projects are underway to enhance productivity of pomegranate, citrus
and cashew. These projects will help JISL to secure raw material for
processing division and increased sale of its irrigation systems due to
increased farm incomes. Another ambitious research project to cultivate
rice by drip irrigation is underway. An MoU with International Rice
Research Institute is signed recently for the purpose.
Food Park- Research and Development NA
Energy Park -Research and Development
- Six projects are completed and five projects are in progress. List of
completed projects is as follows;
1. Tracker effect on solar pumping - improves the output discharge by
25%
2. Photo voltaic modules - IEC certified.
3. Solar water pump - tested by Solar Energy Center, New Delhi.
4. Energy generation from agri and food waste.
5. Automation in PV module manufacturing process.
6. Solar heating systems with special plastic tank to solve the
problem of leakages due to hard water and corrosion.
- Identified about 26 projects for development.
- New set up with prototyping & testing equipments is near completion.
R & D Expenditure ? Million
Sr. No. Particulars 2009-10 2008-09
a. Capital Expenditure 146.52 69.71
b. Revenue Expenditure 48.48 34.99
c. Total 195.00 104.70
d. % of Revenue 0.72% 0.48%
20. Acknowledgement
The Directors take this opportunity to place on record their
appreciation of wholehearted support received from all stakeholders,
customers and the various departments of Central and State Governments,
Financial Institutions, Bankers, the Dealers and Suppliers of the
Company. The Directors wish to place on record their sense of
appreciation for the devoted services of all the associates of the
Company.
By order of the Board
Sd/-
Anil B. Jain
Mumbai, 2nd September, 2010 Managing Director
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